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Question 13 40% of a URC's funding comes from risk-free debt. The company's common stock has a beta of 0.5, a market ris
Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
- Question 13 40 Of A Urc S Funding Comes From Risk Free Debt The Company S Common Stock Has A Beta Of 0 5 A Market Ris 1 (29.6 KiB) Viewed 20 times
Question 13 40% of a URC's funding comes from risk-free debt. The
company's common stock has a beta of 0.5, a market risk premium of 8%, and an interest rate of 10%. Suppose the
company pays 20% tax on its profits. What is the
company's after-tax WACC? Calculate your answer as a percent rounded to 1 decimal place. (Do not round intermediate calculations.) O 9.5% O 20.8% O 15.0% 1 pts O 11.6%