Question: Consider a Korean firm whose debt has a market value of 200 million KRW, and whose stock has a market value of 300 million KRW.

Consider a Korean firm whose debt has a market value of 200 million KRW, and whose stock has a market value of 300 million KRW. The cost of debt is 5%, and corporate tax rate is 25%. The firms equity beta is 1.5, and the return of market portfolio is 8%, and the risk-free rate is 0.5%. What is this firms WACC?

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