A company's share price is $23, the book value of its' equity is $112, it has 11

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A company's share price is $23, the book value of its' equity is $112, it has 11 shares outstanding and the beta of its' shares is 0.9.

The company's outstanding net debt has a market value of $105 with a 7.6% yield-to-maturity.

The risk free rate is 4.6% and the expected market risk premium is 5.7%.

What is the company's WACC assuming a corporate tax rate of 21%?

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Posted Date: Jan 10, 2021 11:13 AM

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A company's share price is $23, the book value of its' equity is $112, it has 11

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WACC weightcost 706798 29336004 869 WORKING NOTES ... View the full answer

Financial and Managerial Accounting

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