Question: Using the information below, calculate WACC. Target Capital Structure: 30% Debt and 70% Equity Long-term government bond rate is 2.5%; levered beta is 0.9; market

Using the information below, calculate WACC.



Target Capital Structure: 30% Debt and 70% Equity



Long-term government bond rate is 2.5%; levered beta is 0.9; market risk premium is 6%; tax rate is 25%.



Cost of debt is 4%

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