Determine the target wacc

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We can determine the target WACC for Apix Printing Inc., given these assumptions," she says as she hands you a piece of paper that says the following:

  • Weights of 40% debt and 60% common equity (no preferred equity)
  • A 35% tax rate
  • Cost of debt is 8%
  • Beta of the company is 1.5
  • Risk-free rate is 2%
  • Return on the market is 11%

Reference no: EM13787164

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