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Assume that debt 50m equity 30m riskfree rate rf 35 beta

Question 1. WACC

Assume that Debt = 50m; Equity = 30m. Riskfree rate (Rf) = 3.5%, Beta = 1.65, Expected market return (Rm) = 9.2%. Bond Rating = “BBB”. Corporate Tax Rate (tax) = 35%. Compute the firm’s WACC using the Three-Step approach (applied in Homework #6).

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Finance Basics: Assume that debt 50m equity 30m riskfree rate rf 35 beta

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