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Business, 09.10.2019 22:00 JanetQ2002

Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selling for $34 per share. its beta is 1.1, and the current risk-free rate is 3.4%. the expected return on the market for the coming year is 12.1%. thorpe will sell corporate bonds for $34 comma 000 comma 000 and retire common stock with the proceeds. the bonds are twenty-year semiannual bonds with a 12.4% coupon rate and $1 comma 000 par value. the bonds are currently selling for $985.51 per bond. when the bonds are sold, the beta of the company will increase to 1.6. what was the wacc of thorpe and company before the bond sale? wha

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Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selli...
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