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As an Analyst, you were tasked to compute the Weighted Average Cost of Capital of various companies given the following information. Income tax rate is

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

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