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The market value of equity is $1000 and of debt is $600, the cost of debt is 3.9%, beta equity is 1.2, risk-free is 3%,

The market value of equity is $1000 and of debt is $600, the cost of debt is 3.9%, beta equity is 1.2, risk-free is 3%, market return is 9%, and the tax rate is 30%, calculate the after-tax WACC.

Select one:

a.

0%

b.

7.39%

c.

10.2%

d.

7.6%

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Question

The market value of equity is $1000 and of debt is $600, the cost of debt is 3.9%, beta equity is 1.2, risk-free is 3%,

The market value of equity is $1000 and of debt is $600, the cost of debt is 3.9%, beta equity is 1.2, risk-free is 3%, market return is 9%, and the tax rate is 30%, calculate the after-tax WACC. Select one: a. 0% b. 7.39% c. 10.2% d. 7.6%

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The market value of equity is $1000 and of debt is $600, the cost of debt is 3.9%, beta equity is 1.2, risk-free is 3%, market return is 9%, and the tax rate is 30%, calculate the after-tax WACC.

Select one:

a.

0%

b.

7.39%

c.

10.2%

d.

7.6%