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DataMaApp has become a very successful company - consistently looking to expand via acquisitions and expansion projects. DataMaApp needs to establish an acceptable return on
DataMaApp has become a very successful company - consistently looking to expand via acquisitions and expansion projects. DataMaApp needs to establish an acceptable return on its capital investments. The common stock of DataMaApp Inc. has a beta of 0.8 , the Treasury bill rate is 4% and the market risk premium is estimated at 7%. DataMaApp's capital structure is 30% debt paying a 5% interest rate, and 70% equity. What is DataMaApp's cost of equity capital (from CAPM) and its WACC? DataMaApp's tax rate is 35%
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