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Company A has an unlevered beta equal to 1.2. The company has a debt equal to $20,000,000 and a levered beta equal to 1.9. Assume

Company A has an unlevered beta equal to 1.2. The company has a debt equal to $20,000,000 and a levered beta equal to 1.9. Assume we have perfect competitive markets and there is no taxation. If the risk free rate is 2.00% and the expected return of the market portfolio is 6.00%, what is the company's wacc?

Ans: 6.80%

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