Business, 27.07.2021 02:30 evazquez

firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each selling for $1,200. The bonds mature in 25 years, have a coupon rate of 10%, and pay coupons annually. The firm's beta is 1.5, the risk-free rate is 5%, and the market risk premium is 7%. The tax rate is 34%. Calculate the WACC.

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firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,...

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