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From the figures mentioned below of Umbrella Corp, calculate the Weighted Average Cost of Capital (WACC). Interest expenses $443 million Corporate tax rate 30% Default
From the figures mentioned below of Umbrella Corp, calculate the Weighted Average Cost of Capital (WACC).
Interest expenses $443 million
Corporate tax rate 30%
Default spread 1.56%
Market Value of short term debt $885 million
Market Value of long term debt $9,552 million
Market value of operating liabilities $1200 million
Total asset of firm $18,349 million
Systematic risk 0.79
Market value of equity $21,129 million
Risk free rate 1.7%
Market risk premium 4.72%
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