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katerooshkie katerooshkie
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6 months ago
Toronto Skaters Company is an all-equity company and is able to fund a $1 million investment using cash. The company has a beta of 1.4, the risk-free rate is 3%, and the return on the market is 8%. Flotation costs for new equity are 2%. The tax rate is 40%. What is the WACC of the investment?

▸ 6.6%

▸ 14.2%

▸ 10%

▸ 8%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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crwille78crwille78
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6 months ago
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