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Your firm has 100m in equity and 40m in risk-free debt

You are trying to estimate the WACC for your company. Your firm has a beta of equity of 1.60. The expected return of the market is 7% and the risk-free rate is 2%. Your firm has $100M in equity and $40M in risk-free debt. Assume the corporate tax rate is 40%. What is your firm's WACC?

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Finance Basics: Your firm has 100m in equity and 40m in risk-free debt

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