Question
A company is 37% financed by risk-free debt. The interest rate is 12%, the expected market risk premium is 10%, and the beta of the
A company is 37% financed by risk-free debt. The interest rate is 12%, the expected market risk premium is 10%, and the beta of the company's common stock is 0.62.
What is the after-tax WACC, assuming that the company pays tax at a 35% rate?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
