6.67 pts A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 8.75%. The beta of this company is 0.75, the risk-free rate is 4.5% and the expected return on the market is 12.5%. The tax rate of this company is 21%. What is the WACC for this company? O 11.66% O 15.08% O 10.18% O 9.07% 13.94%
6.67 pts A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 8.75%. The beta of this company is 0.75, the risk-free rate is 4.5% and the expected return on the market is 12.5%. The tax rate of this company is 21%. What is the WACC for this company? O 11.66% O 15.08% O 10.18% O 9.07% 13.94%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 8P
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Finance
![6.67 pts
A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 8.75%. The beta
of this company is 0.75, the risk-free rate is 4.5% and the expected return on the market is 12.5%. The tax rate of this company is
21%. What is the WACC for this company?
O 11.66%
O 15.08%
O 10.18%
O 9.07%
13.94%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61b37b8c-29f7-481e-ab86-0f28abb86e8e%2F97e063c9-51bf-425a-aec1-6e285deaa898%2Fdcuf2c8_processed.png&w=3840&q=75)
Transcribed Image Text:6.67 pts
A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 8.75%. The beta
of this company is 0.75, the risk-free rate is 4.5% and the expected return on the market is 12.5%. The tax rate of this company is
21%. What is the WACC for this company?
O 11.66%
O 15.08%
O 10.18%
O 9.07%
13.94%
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