Determine the WACC given the above assumptions
Question # 00484247
Posted By:
Updated on: 02/13/2017 11:04 PM Due on: 02/14/2017
Determine the WACC given the above assumptions
- 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%
-
Rating:
/5
Solution: Determine the WACC given the above assumptions