Using the information below, calculate WACC. Target Capital Structure: 30% Debt and 70% Equity Long-term government bond

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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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Entrepreneurial Finance

ISBN: 978-1305968356

6th edition

Authors: J. Chris Leach, Ronald W. Melicher

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Posted Date: May 24, 2023 08:05 AM

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Using the information below, calculate WACC. Target Capital Structure: 30% Debt and 70% Equity Long-term government bond

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To calculate the Weighted Average Cost of Capital WACC we need to determine the cost of deb... View the full answer

Entrepreneurial Finance

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