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MSK Co. has 6.5 million shares of stock outstanding. The stock currently sells for $12 per share. The firm's debt is publicly traded and was
MSK Co. has 6.5 million shares of stock outstanding. The stock currently sells for $12 per share. The firm's debt is publicly traded and was recently quoted at 90 percent of face value. It has a total face value of $6.5 million, and it is currently priced to yield 10 percent. The risk-free-rate is 6 percent, and the market risk premium is 4.5 percent. You've estimated that MSK has a systematic risk of 1.20. If the corporate tax rate is 30 percent, what is the WACC? 11.79%11.09%13.52% None 11.40% 10.77%
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