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11. The following information is given for your firm, from which you must calculate the WACC: Equity Information: 75 million shares $45 per share Beta
11. The following information is given for your firm, from which you must calculate the WACC: Equity Information: 75 million shares $45 per share Beta = 1.65 Expected market return = 12% Risk-free rate = 5% Debt Information: $1.75 billion in outstanding debt (face value) Current quote = 90 Coupon rate = 8%, semiannual coupons 25 years to maturity Tax rate = 30% What is the cost of equity (using the CAPM approach)? What is the cost of debt? What are the capital structure weights
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