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Business, 27.11.2019 06:31 tynitenaire

Afirm has 1 million shares of common stock outstanding with a market price of $5.00 each. it has 2,500 bonds outstanding, each with a market value of $1,100. the bonds mature in 13 years, have a coupon rate of 10 percent, and pay coupons annually. the firm's beta is 1.3, the risk-free rate is 4.5 percent, the market risk premium is 7 percent, and the tax rate is 34 percent. what is the weighted average cost of capital (wacc)? a) 5.45 percentb) 6.53 percentc) 9.49 percentd) 10.81 percente) 11.65 percent

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Afirm has 1 million shares of common stock outstanding with a market price of $5.00 each. it has 2,5...
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