Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company:
| Book value of debt | $80 million |
| Market value of debt | $150 million |
| Share price | $60 |
| Shares outstanding | 10 million |
| Cost of equity | 7% |
| Cost of debt | 4% |
| Tax rate | 30% |
Based on this information, the company's WACC is closest to:
An analyst gathers the following information about a company:
| Book value of debt | $80 million |
| Market value of debt | $150 million |
| Share price | $60 |
| Shares outstanding | 10 million |
| Cost of equity | 7% |
| Cost of debt | 4% |
| Tax rate | 30% |
Based on this information, the company's WACC is closest to:
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