suppose you ran a business, your tax rate was 31%, the CAPM model said that...
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suppose you ran a business, your tax rate was 31%, the CAPM model said that the required return on equity capital was 12.5% and you are issuing a bonds with a 2.7% coupon. 55% of your capital to be used for investments is equity and the remaining 45% is debt arising from the bond issue. What is your WACC?
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