You have the following information on Ralph's Company (1) The firm's bonds have a maturity of 20 years, an 8.00% annual coupon, a par value of $1,000, and a market price of $1,075.00.(2) The company's average tax rate is 40%.(3) The stock's beta is 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.50%.(4) The company has a capital structure that consists of 35% debt and 65% common equity.What is the company's WACC?

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Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for Ralphs Company we need to calculate the c... View the full answer