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P 0 = Stock Price = $45.00 Number outstanding= n = 30,000 Bond Price = $950.00 Number Outstanding= 1,000 YTM = 6.0% R f =

P₀ = Stock Price = $45.00 Number outstanding= n = 30,000

Bond Price = $950.00 Number Outstanding= 1,000 YTM = 6.0%

R_f = 3.0% R_M = 11.0% B_L = 1.25

Tax = 30%

What is the WACC after tax?

Answer Format: Enter 9.75% as 9.75

r_S = r_f + b_L X (R_m - r_f)

WACC = W_d x r_d x (1 T) + W_s x r_s

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