Vandelay Industries has a market value $ 1 0 0 million of debt outstanding that is trading

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Question:

Vandelay Industries has a market value $

100

million of debt outstanding that is trading at a YTM of

10 % .

Vandelay also has a market value of equity of $

120

million. Vandelay Industries has a cost of equity of

13 %

and faces a tax rate of

35 % .

Calculate the weighted average cost of capital

(

WACC

) ?

Posted Date: May 18, 2024 11:10 AM

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Vandelay Industries has a market value $ 1 0 0 million of debt outstanding that is trading

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