Question
Given the following inputs and assumptions, estimate the WACC for Gallo Distributors Inc. Risk-free rate 1% Equity risk premium 5% Beta 0.85 Size Premium 6%
Given the following inputs and assumptions, estimate the WACC for Gallo Distributors Inc.
Risk-free rate 1%
Equity risk premium 5%
Beta 0.85
Size Premium 6%
Company Specific Risk Premium 1%
Pre-tax borrowing rate 5.5%
Fair market value of debt to fair market value of invested capitol 20%
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
