Business, 25.06.2021 02:20 deondra0803

Suppose you ran a business, your tax rate was 21%, the CAPM model said that the required return on equity capital was 17% and you are issuing a bonds with a 4% coupon. 60% of your capital to be used for investments is equity and the remaining 40% is debt arising from the bond issue. What is your WACC?

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Suppose you ran a business, your tax rate was 21%, the CAPM model said that the required return on e...