Calculate the WACC of Correct Inc

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Question - Correct Inc. is a publicly traded firm with 100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost of debt at 6.5% at a marginal tax rate of 40%. The company has $100 million of cash on its balance sheet. Using the same information from before, please calculate the WACC of Correct Inc. assuming a risk-free rate of 2.5%, a company Beta of 1.2 and a market risk premium of 6%.

Reference no: EM132217810

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