Question: Old MathJax webview show working if possible Problem 14 The B.B. Lean Co. has 1.4 million shares of stock outstanding. The stock currently sells for

Old MathJax webview

Old MathJax webview show working if possible Problem 14 The B.B. Lean

show working if possible

Problem 14 The B.B. Lean Co. has 1.4 million shares of stock outstanding. The stock currently sells for $20 per share. The firm's debt is publicly traded and was recently quoted at 93 percent of face value. It has a total face value of $5 million, and it is currently priced to yield 11 percent. The risk-free rate is 8 percent, and the market risk premium is 7 percent. You've estimated that Lean has a beta of .74. If the corporate tax rate is 34 percent, what is the WACC of Lean Co

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