Good Evening, I am trying to calculate the WACC for this problem and not sure which numbers to use. The formula provided WACC = (w
Good Evening,
I am trying to calculate the WACC for this problem and not sure which numbers to use. The formula provided WACC = (wd)(rd)(1 - T) + (ws)(rs) does not match the tutorials used online.
the question The company has a required capital structure of 30% debt and 70% equity. They can issue new bonds to yield 4.5%. With respect to equity, the companys beta is 1.55 the expected return on the market is 14% and the risk-free rate is 5%. Use this information to compute the companys WACC and then use the WACC as the required return for this project. Please provide a detailed written example if possible.
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