Debt on its balance sheet for which it pays an interest rate

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Reference no: EM131579361

Given the following information, what is the firms WACC?

DFG is a company with 500 million of debt on its balance sheet for which it pays an interest rate of 6.75%. It has 300 million shares outstanding with an average price of $100 per share. The beta is 0.85 and treasury bills are yielding 3.5%. The expected market return is 7.85% and the tax rate is 32%.

Reference no: EM131579361

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