Question: ' Question 48 0 l 5 pts Assume a world with a tax rate of 34% and no bankruptcy. If WSB Inc. was an all-equity

' Question 48 0 l 5 pts Assume a world with a tax
' Question 48 0 l 5 pts Assume a world with a tax rate of 34% and no bankruptcy. If WSB Inc. was an all-equity rm its return would be 9.2% per year. However, it does have bonds that currently have a YTM of 6.3%. By how many basis points would WSB's WACC change if it changes from its current debt-to-equity of 0.5 to its optimal one? Remember, a change is ending value minus beginning value. Submit your answer to the whole basis point. For example, 423.45 is -123 _/' -400 margin of error +/- 1

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