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What is wacc

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Reference no: EM133094091

Question - Assume you have collected the following data:

(1) The yield to maturity on the company's outstanding 7% annual coupon bonds is 5%, and its tax rate is 25%.

(2) The risk-free rate is 2%, the market risk premium (rM - rRF) is 5%, and the firm's beta is 0.90.

(3) The firm's capital structure consists of 35% debt and 65% equity.

What is WACC?

Reference no: EM133094091

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