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PepsiCo recently issued $ 1 2 0 B of debt with a cost of debt of 5 % . Before this, the company had a

PepsiCo recently issued $

120

B of debt with a cost of debt of

5 % .

Before this, the company had a cost of equity of

9 %,

a cost of debt of

5 %,

and a debt

-

-

equity ratio of

1

3 .

The new leverage ratio for the company is

1

2 .

If the tax rate is

24 %,

what is the company

s WACC after issuing this debt?

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