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Q1-3 A firms D/E ratio is 0.6 The before tax cost of debt is 5% Risk free interest is 4% Beta is 1.25 Risk premium
Q1-3 A firms D/E ratio is | 0.6 | |||
The before tax cost of debt is | 5% | |||
Risk free interest is | 4% | |||
Beta is | 1.25 | Risk premium is | 7.5% | |
The firms tax rate is | 35% | |||
Required: Calculate the firms WACC. | ||||
Round your answer to 4 decimals |
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