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Consider this information from Last Year (Y0) for (#5) through (#11): Sales 10,000,000 IBD 6,000,000 COGS 7,000,000 Book Equity 3,000,000 Overhead 1,800,000 Beta 1.2 Interest
Consider this information from Last Year (Y0) for (#5) through (#11):
Sales 10,000,000
IBD 6,000,000
COGS 7,000,000
Book Equity 3,000,000
Overhead 1,800,000
Beta 1.2
Interest Exp 300,000
ERP 7.8%
Tax (30%)
Risk free rate 4.0%
Number of common equity shares issued and outstanding: 100,000
No preferred stock, stock options, or warrants exist.
10. Assuming the total capital structure is shown (from IBD and Book Equity), what is the value of WACC?
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