The following information is gleaned from the financial statement of Quackenbush Inc.: Beta of common stock =

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The following information is gleaned from the financial statement of Quackenbush Inc.:

Beta of common stock = 1.4

Treasury bill rate = 4.50%

Market risk premium = 8%

Yield to maturity on long-term debt = 7%

Book value of equity = $330 million

Market value of equity = $660 million

Long-term debt outstanding = $660 million

Corporate tax rate = 21%

What is the company’s WACC?

Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Related Book For answer-question

Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Posted Date: Nov 29, 2023 11:03 PM

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The following information is gleaned from the financial statement of Quackenbush Inc.: Beta of common stock =

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Intermediate Financial Management

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