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ABC Co. produces widgets. It is a non-growth company in the 35% tax bracket. Sales are estimated to be $3,500,000 per year and costs represent

ABC Co. produces widgets. It is a non-growth company in the 35% tax bracket. Sales are estimated to be $3,500,000 per year and costs represent 65% of sales. The firms pre-tax cost of debt is 8 percent and its annual interest expense is $200,000. Company analysts estimate that the firms unlevered cost of equity is 12%. What is the Value of ABC Co.? What is ABC Co.s cost of equity What is ABC Co.s WACC?

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