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7) Glassmakers has the below characteristics. The premerger debt is $5, the premerger equity is $10. The risk free rate is 6%. The premerger beta is 1.36. The tax rate is 40%. The cost of debt premerger is 11%. The expected market rate of return is 10%. What is Glassmakers' pre-merger WACC?

9.02%

9.50%

9.83%

10.01%

11.29%

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Elin Hessel
Elin HesselLv2
29 Sep 2019

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