Publicly traded and has coupon rate and yield to maturity

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Andrew-win Ltd has a debt­-to­-equity ratio of 0.4. Andrew­-win Ltd’s debt is publicly traded and has a coupon rate and yield to maturity of 7% and 9%,respectively. It has a firm’s beta of 1.3. The risk-­free rate is 5% and the expected return on the market portfolio is 12%. What is Andrew-­win Ltd’s weighted average cost of capital if the corporate tax rate is 40%?

Reference no: EM131308481

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