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Calculate the weighted average cost of capital (WACC) for this firm. You are now asked to calculate the WACC for a toothpaste manufacturer with the

 


Calculate the weighted average cost of capital (WACC) for this firm.

You are now asked to calculate the WACC for a toothpaste manufacturer with the following data: Average share price for last 6 months = 34/ share Current year's dividend = 3/ share Applicable growth rate = 3% Tax rate = 35% Company is financed via 75% equity Industry average unlevered beta = 1.84 Company's debt is in the form of a syndicated loan that carries an interest rate of 4.5%

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