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6. Big Corp's capital structure today is $1,056 million in Long Term Debt and $1,462 million in Common Equity. If its debt were issued today,
6. Big Corp's capital structure today is $1,056 million in Long Term Debt and $1,462 million in Common Equity. If its debt were issued today, Big would pay an interest rate of 7.1 %/year (before tax). Big's Cost of Equity is estimated to be 11%/year. Given a tax rate of 30%, what is Big's Weighted Average Cost of Capital (WACC)? (Your answer should be a % carried to 2 places.)
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