Q3: IMB Inc. assets and liabilities total

$600MM

and

$180MM

, respectively; its cost of debt

=6%

. IMB Inc.'s stock Beta

=1.20

, and the return on underlying market

(s)=9%

. You notice that 90-day Treasury Bills pay

4%

, while local municipal bonds yield

5%

. Last year, IMB Inc. paid

$20

MM in taxes on earnings before taxes of

$100

MM- what is IMB Inc.'s WACC?

Q3: IMB Inc. assets and liabilities total $600MM and $180MM, respectively; its cost of debt =6%. IMB Inc.'s stock Beta =1.20, and the return on underlying market(s) =9%. You notice that 90 -day Treasury Bills pay 4%, while local municipal bonds yield 5%. Last year, IMB Inc. paid $20 MM in taxes on earnings before taxes of $100 MM- what is IMB Inc.'s WACC