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EpiscoWhat EpiscoWhat
wrote...
Posts: 268
Rep: 4 0
6 years ago
Galt's WACC is closest to:
A) 10.6%
B) 11.2%
C) 11.8%
D) 12.5%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
D
Explanation:  D)  βU =  βE +  βD +  βC
   =   × 1.2 +   × 0 = 1.411765
rwacc = rf + βu(rm - rf) = 4% + 1.411765(6%) = 12.47%
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