Question: 6.46 is wrong A company is going to open a new division. The division will be financed with $1 million in debt and $3 million

6.46 is wrong 6.46 is wrong A company is going to open a new division.

A company is going to open a new division. The division will be financed with $1 million in debt and \$3 million in equity. The tax rate is 15% for all firms. The risk-free rate is 1% and market portfolio return is 7%. The yield on the division's debt is 4%. The information on the relevant pure play companies is given below: What is the new division's WACC? A company is going to open a new division. The division will be financed with $1 million in debt and \$3 million in equity. The tax rate is 15% for all firms. The risk-free rate is 1% and market portfolio return is 7%. The yield on the division's debt is 4%. The information on the relevant pure play companies is given below: What is the new division's WACC

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