medium · Investment Banking valuation-core
A company has $200 million in debt and $120 million in book equity.
If the cost of debt is 7%, the tax rate is 35%, and the cost of equity is 10%, what is the WACC using book values as a proxy for market values?
- 6.59%
- 7.50%
- 8.125%
- 5.85%
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