Question
4. Please consider the following company items: Other items Tax rate 25% Unlevered beta 0.80 Market risk premium Risk free rate 6.5% 2.0% Long
4. Please consider the following company items: Other items Tax rate 25% Unlevered beta 0.80 Market risk premium Risk free rate 6.5% 2.0% Long term growth Long term ROCB 3.0% 10.0% Target debt/equity ratio Bond rating 0.50 Small firm premium 2.5% BB+ Credit spread debt 3.0% What is the Weighted Average Cost of Capital (or WACC) of this company in percentages (%)? Please round your answer to one decimal place, use a period to indicate the decimal place and provide your answer without a percentage sign (e.g. 13.6 instead of 13.6%). Enter answer here 2 points
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