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Given the following information, compute the companys WACC current risk-free rate = 1.5% average risk-free rate over past 50 years = 4% market risk premium
Given the following information, compute the companys WACC
- current risk-free rate = 1.5%
- average risk-free rate over past 50 years = 4%
- market risk premium = 6%
- Beta = 1.2
- D/V = 30%
- yield to maturity on debt = 9%
- marginal tax rate = 34%
- taxes paid last year = $5 million
- earnings before tax last year = $30 millio
- a.8.53%
- b.10.03%
- c.7.87% d.6.39% e.6.81%
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