Outstanding debt with a market value

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Investors require a return on Company XYZ’s stock of approximately 10% per year. The company has 10 million shares outstanding with a price of $20/share. Company XYX has outstanding debt with a market value $80 million and a yield to maturity of 6%. The firm’s tax rate is 30%. The Weighted Average Cost of Capital for XYZ is:

Reference no: EM13950711

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