Long-term debt outstanding and corporate tax rate

Question # 00767780 Posted By: JARED Updated on: 06/26/2020 05:49 AM Due on: 07/01/2020
Subject Finance Topic Finance Tutorials:
Question
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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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC %

 

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