Question $29$

$3$ pts

You are the CFO of a pharmaceutical company with $100\%$ equity financing. The company's stock has a beta of $0\mathrm{.}7.$ The market risk premium and the risk$-$free interest rate are $10\%$ and $3\%,$ respectively. You have obtained the following information about the average cost of capital $($WACC$)$ for firms in selected industries:

Industry Discount Rates

$\backslash$table$[[$Industry$,$Average WACC$],[$Semiconductor$,16\%$