The yield to maturity on its debt is 4 the corporate tax


A firm has a $400 million market capitalization and $250 million in debt. It also has $100 million in cash and short-term investments on the balance sheet. The yield to maturity on its debt is 4%, the corporate tax rate is 35%, and the required return on its equity is 14%. What is this firm's WACC?

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Basic Statistics: The yield to maturity on its debt is 4 the corporate tax
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