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Based on three of its competitors, find WACC for Excelsior Knives Comp A Comp B Comp C Equity beta 1.1 1.5 1.8 tax rate 20%
Based on three of its competitors, find WACC for Excelsior Knives
Comp A | Comp B | Comp C | |
Equity beta | 1.1 | 1.5 | 1.8 |
tax rate | 20% | 30% | 25% |
Debt (M) | 120 | 200 | 60 |
Equity (M) | 300 | 200 | 90 |
Excelsior Knives | |
tax rate | 21% |
Debt (M) | 100 |
Equity (M) | 60 |
Cost of debt | 5.00% |
Market conditions | |
risk-free rate | 2.50% |
MRP | 4.00% |
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