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Below are the pertinent data of ABC Inc. Tax Rate 30% Cost of Debt (Before Tax) 8% Total Debt 350,000.000 Risk Free Rate (Equity) 2%

Below are the pertinent data of ABC Inc.

Tax Rate 30%

Cost of Debt (Before Tax) 8%

Total Debt 350,000.000

Risk Free Rate (Equity) 2%

Beta 1.20

Shares Outstanding 55,500 shares

Current Share Price 100.00

Market rate of return 8.5%

Compute for the following:

  1. Total Debt and Equity (Total Capital)
  2. Debt as % of Capital
  3. After Tax Cost of Debt
  4. Equity as % of Total Capital
  5. Cost of Equity
  6. Weighted Average Cost of Capital

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