What is the after-tax WACC

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Question - A company is 43% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and the beta of the company's common stock is 0.53. What is the after-tax WACC, assuming that the company pays tax at a 30% rate?

a. 8.48%

b. 9.24%

c. 9.95%

d. 11.11%

Reference no: EM132756685

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