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judyterrae judyterrae
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3 years ago
Santa's Workshop shares are currently trading at $14.75 each. The market yield on Santa's debt is 6% and the firm's beta is 0.48. The T-Bill rate is 3.5% and the market risk premium (E(kM) - kF) is 6.25%. The company's target capital structure is 50% debt and 50% equity. The corporate tax rate is 40%. Calculate Santa's WACC.

▸ 1.95%

▸ 3.60%

▸ 4.00%

▸ 5.05%

▸ 6.50%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
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KarenKaren
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3 years ago
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