Given the following cash flows:

Year	0	1	2	3
CF	-3,500	600	1,000	Cash flow will grow at a constant rate g=6%

We choose the following capital structure plan:

	Debt	Equity
Plan	30%	70%

Equity Benchmark:

The unlevered beta is 2, market return is 16%, risk-free rate is 3%.

Debt Benchmark:

Par:100, Annual Coupon: 6%, 10-year to maturity, Selling at $88.43

Tax rate is 40%.

What is the Weighted Average Cost of Capital (WACC)?

Given the following cash flows:

Year	0	1	2	3
CF	-3,500	600	1,000	Cash flow will grow at a constant rate g=6%

We choose the following capital structure plan:

	Debt	Equity
Plan	30%	70%

Equity Benchmark:

The unlevered beta is 2, market return is 16%, risk-free rate is 3%.

Debt Benchmark:

Par:100, Annual Coupon: 6%, 10-year to maturity, Selling at $88.43

Tax rate is 40%.

What is the Weighted Average Cost of Capital (WACC)?

33.14%

21.69%

26.37%

17.28%