What would be your wacc

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Problem

The cost of ege-nonabo debts is 7%. The risk -free rate is 3%. The expected yield on the market portfolio is 8%. According to current rental taxes is 25%. Its optimal capital structure is 60% of debt and 40% of its own capital.

1) If Ege-Nabo's beta is estimated at 1.1, what is your WACC? Get the instant assignment help.
2) If the beta is estimated at 0.8, significantly lower, what would be your WACC?

Reference no: EM133911192

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