Question
Currently, Bloom Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Blooms debt currently has an 2.1% yield to maturity. The
Currently, Bloom Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Blooms debt currently has an 2.1% yield to maturity. The risk-free rate (rRF) is 4.2%, and the market risk premium (rM rRF) is 7.2%. Using the CAPM, Bloom estimates that its cost of equity is currently 17.5%. The company has a 25% tax rate.
What is Blooms current WACC?
please round to 4 decimal places
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Corporate Finance Fundamentals Big Business Theory For SME Investor Or MBA Application
Authors: M. Saad, Axel Tracy
1st Edition
1517652944, 978-1517652944
