Calculate the wacc for a firm with a debt-equity ratio

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Problem 1: Calculate the WACC for a firm with a debt-equity ratio of 1.5. The debt pays 8 percent interest and the company has a 35 percent tax rate. Government t-bills are currently returning 1.5% and the market risk premium is currently at 7%. This company has a beta of 1.35.

Reference no: EM132791554

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