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Please help QUESTION 10 Leapinge Ltd has asked you to estimate the WACC for their company. You have collected the following information: The return on
Please help
QUESTION 10 Leapinge Ltd has asked you to estimate the WACC for their company. You have collected the following information: The return on risk-free Australian Government Bonds is 3% p.a. Leapinge Ltd has 73,000,000 shares outstanding and its shares are currently trading at $5.50 per share. The beta of Leapinge is 0.4, and the expected return on the market is 13%. Leapinge Ltd also has $675 million in corporate bonds. These bonds have a variable interest rate which is currently 5.1% compounded annually. The company faces a tax rate of 35%. Calculate the Weighted Average Cost of capital for Leapinge Ltd. Enter your answer in a decimal format to six decimal places (0.123456 not 12.3456%)Step by Step Solution
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