Using the information below, calculate the firm's WACC. Target capital structure is 30% debt and 70% equity
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Question:
Using the information below, calculate the firm's WACC.
- Target capital structure is 30% debt and 70% equity
- Long-term government bonds yielding 3%
- Company pays 225 bp above comparable government bonds for its debt
- Tax Rate is 25%
- Market Risk Premium is 6.3%
- Beta is 1.17
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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