/The following information applies to the next four problems l Currently, the Fotopoulos Corporation's balance sheet is as follows: billion Debt $1 billion Assets $5 Common equity 4 billion Total debt & common equity $5 billion $5 billion Total assets The book the company (both debt and common equity) equals its market value tooth debt and value of company has determined the following informatio common equity). Furthermore, the The company estimates that its before-tax cost of debt is 8 percent. The company estimates that its levered beta is 1.1. The risk-free rate is 5 percent. The market risk premium, RM-RF, is 6 percent. The company's tax rate is 30 percent. In addition, the Fotopoulos Corporation is considering a recapitalization. The proposed pla issue $1 billion worth of debt and to use the money to repurchase si billion worth of comm stock. As a result of this recapitalization, the firm's size will not change. 15. What is Fotopoulos' current WACC (before the proposed recapitalization)? c. 10.40% /The following information applies to the next four problems l Currently, the Fotopoulos Corporation's balance sheet is as follows: billion Debt $1 billion Assets $5 Common equity 4 billion Total debt & common equity $5 billion $5 billion Total assets The book the company (both debt and common equity) equals its market value tooth debt and value of company has determined the following informatio common equity). Furthermore, the The company estimates that its before-tax cost of debt is 8 percent. The company estimates that its levered beta is 1.1. The risk-free rate is 5 percent. The market risk premium, RM-RF, is 6 percent. The company's tax rate is 30 percent. In addition, the Fotopoulos Corporation is considering a recapitalization. The proposed pla issue $1 billion worth of debt and to use the money to repurchase si billion worth of comm stock. As a result of this recapitalization, the firm's size will not change. 15. What is Fotopoulos' current WACC (before the proposed recapitalization)? c. 10.40%