Question
My company has equity beta of 0.56, 5.02% cost of (risk-free) debt, and market risk premium is 5% over the risk-free rate. D/(D+E) ratio is
My company has equity beta of 0.56, 5.02% cost of (risk-free) debt, and market risk premium is 5% over the risk-free rate. D/(D+E) ratio is -31.7% and E/(D+E) ratio is 131.7%. Corporate tax rate is 40%. What is WACC for the company?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1285190904, 978-1305176348, 1305176340, 978-1285190907
