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What is the wacc

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Spartan Machinery stock trades at $50 per share with a beta of 1.6, an estimated market return of 14%, and a risk free rate of 6%. There are 20 million shares outstanding. The company has bonds with a face value $1 billion outstanding and a market value of $950 million. The coupon rate is 8% (semiannual coupons) and there are 15 years to maturity. The company has a tax rate of 40%. What is the WACC?

Reference no: EM133060602

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