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What is magee wacc

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Assume that you are on the financial staff of Magee Enterprises, and you have collected the following data: (1) The yield to maturity on the company's outstanding 6% annual coupon bonds is 4.5%, and its tax rate is 25%. (2) The risk-free rate is 3.5%, the market risk premium (rM - rRF) is 5.5%, and the firm's beta is 1.20. (3) The firm's capital structure consists of 45% debt and 55% equity. What is Magee's WACC?

Reference no: EM132484332

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