The hudba corporation has an expected ebit of 2 million in


The Hudba corporation has an expected EBIT of $2 million in perpetuity. The firm has $4 million of debt yielding 8% before taxes. The corporate tax rate is 30%. The equity cost for an unlevered firm of this type is 20%. What is the WACC of this firm?

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Financial Management: The hudba corporation has an expected ebit of 2 million in
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