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Wacc of the company-gerdin inc

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Gerdin Inc. has one million shares outstanding with a price of $20/share. The beta of the company's stock is 1.2. The risk-free rate and the expected return of the market portfolio are 2% and 8% respectively. Other than the stocks, the company also has $10 million bank loan. The interest rate on the loan is 6% per year. The tax rate of the company is 40%. Calculate the WACC of the company.

Reference no: EM132509556

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