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OceanView Resorts is a hospitality company. As a financial analyst, your task is to compute the WACC for the company. OceanView's equity is valued at
OceanView Resorts is a hospitality company. As a financial analyst, your task is to compute the WACC for the company. OceanView's equity is valued at $3,500,000 in the market, and the cost of equity is twice the rate of the current 10-year Treasury note, which stands at 2.5%. On the other hand, OceanView's market value of debt is $1,500,000, with a cost of debt that is 50 basis points above the current prime rate of 3.25%. The corporate tax rate stands at 21%. Calculate the WACC for OceanView Resorts
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