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Part 1 (7 marks) Use the information below to compute its weighted average cost of capital (WACC). Risk-free rate 0.50% Average debt premium 1.80% Debt

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Part 1 (7 marks) Use the information below to compute its weighted average cost of capital (WACC). Risk-free rate 0.50% Average debt premium 1.80% Debt issuance costs 0.20% Leverage (D) 0.35 Asset beta (B.) 0.45 Tax-adjusted market risk premium (TAMRP) 7.00% Average corporate tax rate (T) 28.00% Average investor tax rate (Ta) 28.00%

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