Company A is 30% financed by debt. It issues bonds with an 8% coupon, fifteen...
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Finance
Company A is 30% financed by debt. It issues bonds with an 8% coupon, fifteen year maturity, $1,000 par value, and a market price of $1,070.
Equity beta is 1.2, the market risk premium is equal to 8% and the risk-free rate is 3%.
Estimate WACC of company A based on the given information. Assume a 35% tax rate and annual compounding.
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