What is the companys estimated after-tax wacc

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Question: Suppose a firm is funded by 40% debt and 60% equity. Its cost of debt is 5%, and has the equity beta of 1.5. If the current risk-free government bond rate is 2%, what is the company's estimated after-tax WACC? Assume the current return on market portfolio is 8% and the firm faces 30% tax rate. Please show your work.

Reference no: EM133338910

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