WACC. Here is some information about Stokenchurch Inc.: Beta of common stock = 1.2 Treasury bill rate = 4% Market risk p

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answerhappygod
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WACC. Here is some information about Stokenchurch Inc.: Beta of common stock = 1.2 Treasury bill rate = 4% Market risk p

Post by answerhappygod »

WACC. Here is some information about Stokenchurch Inc.:
Beta of common stock = 1.2
Treasury bill rate = 4%
Market risk premium = 7.5%
Yield to maturity on long-term debt = 6%
Book value of equity = $440 million
Market value of equity = $880 million
Long-term debt outstanding = $880 million
Corporate tax rate = 35%
What is the company’s WACC? (LO13-1)
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