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Tiana_Kailynn Tiana_Kailynn
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3 years ago
Badger Inc. has 10 million shares of common stock outstanding, which currently trade for $22 per share. The company also has 125,000 bonds each with a face value of $1,000 and annual coupons of $80. The bonds have 5 years to maturity and the next coupon is due in one year. The yield on the bonds is 8%. The company's beta is 0.65, the risk free rate is 4.25% and the expected return on the market is 12%. The tax rate is 40%. Calculate Badger's WACC.

▸ 4.25%

▸ 4.80%

▸ 5.50%

▸ 7.75%

▸ 8.46%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
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afahadafahad
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3 years ago
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Tiana_Kailynn Author
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3 years ago
Brilliant ツ
ealvino1610
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Yesterday
Good timing, thanks!
jayfo05
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2 hours ago
This helped my grade so much Perfect
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