A firm is 40% financed by debt with a yield-to-maturity of 8.5%.The equity has a beta of 1.3,the market risk premium is 8.4% and the risk-free rate is 3.8%.What is the firm's WACC if the tax rate is 34%?
A) 10.74%
B) 11.08%
C) 11.61%
D) 11.38%
Correct Answer:
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