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A company has equity beta 0.8 and market value of equity $350 million. The yield to maturity on this companys debt is 8.4%. The market
A company has equity beta 0.8 and market value of equity $350 million. The yield to maturity on this companys debt is 8.4%. The market value of that debt is $250 million. The risk-free rate is 4% and the expected return on the market is 12%; the tax rate of this company is 40%. What is the WACC?
| 8.17% | ||
| 10.03% | ||
| 14.70% | ||
| 12.83% | ||
| 11.43% |
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