The overall stock market return

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$50 million of face value debt currently proced at $45 million. Using bond pricing formula, you've determinrd theYTM to be 6%. Tax rate is 40%. $50 million of book equity on the balance sheet and has 5 million shares of stock outstanding. price of stock is $11 per share. Beta is 0.80,the risk free rate to be 3% and the overall stock market's return to be 10%. What is the WACC?

Reference no: EM132061345

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