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The risk free rate is 6 the levered beta is 136 the equity


MUST show work in excel

Glassmaker has pre-merger $5 in debt and $10 in equity. Rate on debt is 11%. The tax rate is 40%. The risk free rate is 6%. The levered beta is 1.36. The equity risk premium is 4%. What is Glassmakers' pre-merger WACC?

Possible answer:

9.02%

9.50%

9.83%

10.01%

11.29%

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Finance Basics: The risk free rate is 6 the levered beta is 136 the equity
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