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Consider the following for Company E: Company E Risk free rate 4.00% Beta 1.75 Return on the Market 9.00% FV Interest bearing debt 550,000 FV
Consider the following for Company E:
Company E |
|
Risk free rate | 4.00% |
Beta | 1.75 |
Return on the Market | 9.00% |
FV Interest bearing debt | 550,000 |
FV Equity | 975,000 |
Cost of Debt | 6.00% |
Tax Rate | 22.00% |
What is Company E's Weighted Average Cost of Capital (WACC)? Enter your answer as a decimal (e.g. 12.14% would be expressed as .1214)
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