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Noar Noar
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A year ago
A firm has 2 million common shares outstanding, which are currently trading at $45 per share and have a dividend yield of 10%. The firm also has $40 million of 6% bonds outstanding that are currently trading at 110, with a yield to maturity of 3%. There are no preferred shares and no income taxes. Based on this information what is the WACC?

▸ 8.77%

▸ 7.70%

▸ 7.85%

▸ 8.69%
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Corporate Finance

Corporate Finance


Edition: 5th
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Jessicav1126Jessicav1126
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