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BAC (Bank of America Corp) has the following data. Use this to calculate its WACC: (1) A beta of 1.35 (2) The risk-free rate is
BAC (Bank of America Corp) has the following data. Use this to calculate its WACC: (1) A beta of 1.35 (2) The risk-free rate is 1.5% and the market risk premium is 6%. (3) BAC has a MVE (market value of equity) of $215,000,000,000. (4) BAC has $265,000,000,000 in bonds (debt) outstanding. (5) BAC has an effective tax-rate of 25% and the YTM (cost-of-debt) on its debt is 4.1%. What is BACs WACC? Please enter your answer as a decimal, rounded to two places (for example, enter a 12.03% WACC as .1203). |
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