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Question 4(Mark 5) ABC company has a corporate tax rate is 35%. The company beta...

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Accounting

Question 4(Mark 5) ABC company has a corporate tax rate is 35%. The company beta (BA) is 1.35, the risk-free return (Rf) is 4.65%, and the expected rate of return on the market portfolio is 8%. Based on the risk, the bank will charge 7.35% on the commercial loans/chattel mortgages granted to such company. The company will use 60% equity financing and 40% debt financing. Based on the above information, Calculate the WACC. Show your calculations.
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