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General Lithograph Corporation uses no preferred stock. Their capital structure uses 64% debt (hint: the rest is equity). Their marginal tax rate is 21.26%. Their
General Lithograph Corporation uses no preferred stock. Their capital structure uses 64% debt (hint: the rest is equity). Their marginal tax rate is 21.26%. Their before-tax cost of debt is 6.41%. General Lithograph's stock has a beta of 1.76. The current risk-free rate is 0.94%, and the overall market is expected to return 9.62% over the long-run. What is General Lithograph's weighted average cost of capital (WACC)? Please enter without using the "%", but with two decimal places (in other words if you calculate 9.87%, then just enter 9.87).
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