Yield to maturity on debt issues with risk comparable

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Reference no: EM131321180

Yield to maturity (YTM) on debt issues with risk comparable to the Sonar Company is currently 9.2%. Sonar has issued debt two years ago with a YTM of 8.00%. Sonar's common stock beta is 1.15, and its tax rate is 34. The appropriate rate for Sonar to use for debt in estimating its WACC is what rate? Show your answer as a percentage, rounded to two decimal places.

Reference no: EM131321180

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