A firm has a debt-to-asset ratio of 45% (based on the market value of assets)....
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Accounting
A firm has a debt-to-asset ratio of 45% (based on the market value of assets). The firms bondholders require a return of 3.15%, and the equity holders require a return of 9.75%. The firms marginal tax-rate is 34%. Estimate the firms Weighted-Average-Cost-of-Capital (WACC).
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