Question: 5. Long View issues a bond with a yield to maturity of 7.12%. Long View has outstanding equity with a required return of 13.8%. Long

5. Long View issues a bond with a yield to maturity of 7.12%. Long View has outstanding equity with a required return of 13.8%. Long View's balance sheet shows $125 million in debt and $275 million in equity. Compute Long View's hurdle rate (WABC). Ignore taxes

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