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a. What is the cost of equity of each companies? b. What is the after tax cost of debt of each companies? c. What is
a. What is the cost of equity of each companies? b. What is the after tax cost of debt of each companies? c. What is the WACC of each companies DL Corporate Valuators Inc is accessing the valP4-3. As an Analyst, you were tasked to compute for the Weighted Average Cost of Capital of various companies given the following information. Income Tax rate is 25%. Co Ca W Corp A Corp. Corp. Corp. Risk Free rate 4.00% 3.00% 2.00% 3.50% Beta 1.25 1.50 1.30 1.40 Market Return 12.00% 11.00% 10.00% 8.00% Debt to Equity ratio 2.5 3 4 3.5 Credit Spread (in BPS) 200 300 250 150
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