What is the wacc for firm

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A firm has a D/V ratio (in market value terms) of 0.5, cost of debt of 5.0%, and an equity beta of 1.8. The firm's tax rate is 40%. The risk-free rate is 2.0%. Assuming a market risk premium of 6%, what is the WACC for this firm?

Reference no: EM132951391

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