I am having trouble understanding and calculating WACC from the given information in the question below. I
Fantastic news! We've Found the answer you've been seeking!
Question:
I am having trouble understanding and calculating WACC from the given information in the question below. I would appreciate it if someone can explain it step by step.
Timco uses a financial decision that is half debt and half equity. When we borrow new money, the interest rate will be 6%. Our tax rate is 40%. The firm has a beta of 1.5. The risk free rate is .02 and we believe the market will earn 12%. Timco will only use retained earnings as equity. Find Timco's WACC?
Posted Date: