Abc company has an after-tax cost of debt of 6 percent beta


ABC Company has an after-tax cost of debt of 6 percent, beta of .85, tax rate of   35 percent, and a target capital structure of 60 percent equity and 40 percent debt.  Ten year Treasury securities are yielding 4 percent and the risk premium for ABC is 5.1 percent.  What is ABC’s WACC?

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Financial Management: Abc company has an after-tax cost of debt of 6 percent beta
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