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2. Cisco Systems, Inc. has a capital structure consists of $750 million of equity and $300 million of debt. The risk-free rate is 5.5 percent.

2. Cisco Systems, Inc. has a capital structure consists of $750 million of equity and $300 million of debt. The risk-free rate is 5.5 percent. The market risk premium is 5 percent. The stocks beta is 1.4. The company has 20-year semi-annual coupon bonds outstanding with a 9 percent annual coupon that are trading at $1,120. The companys tax rate is 40 percent. What is the companys WACC?

please use excel

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