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Business, 13.04.2021 01:00 Jenniferwolf

Currently, Forever Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Forever's debt currently has an 7% yield to maturity. The risk-free rate (rRF) is 3%, and the market risk premium (rM - rRF) is 8%. Using the CAPM, Forever estimates that its cost of equity is currently 13.5%. The company has a 40% tax rate. What is Forever's current WACC

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Currently, Forever Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Forev...
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