Question
Calculate the company's WACC below. Use the CAPM to estimate the company's cost of equity capital. Also assume that the company's debt is risk free.
Calculate the company's WACC below. Use the CAPM to estimate the company's cost of equity capital. Also assume that the company's debt is risk free. Enter your answer as a percent without the % sign. Round your final answer to two decimals.
| D/E | 0.41 |
| bE | 1.72 |
| rF | 3% |
| E[rM] | 10% |
| tc | 21% |
| D/(D+E) | |
| E/(D+E) | |
| rE | |
| WACC |
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The Retirees Complete Annuity Handbook
Authors: Scot Whiskeyman
1st Edition
8647470052, 979-8647470058
