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The Sido Corporation has 3000 million shares of common stock outstanding with a beta of 0.5, a market price of IDR700 per share, and a
The Sido Corporation has 3000 million shares of common stock outstanding with a beta of 0.5, a market price of IDR700 per share, and a dividend yield of 6 percent. Dividends increase by 5 percent annually. The firm also has IDR759 Billion of debt outstanding that is selling at 105 percent of par that has a yield to maturity of 8 percent. The tax rate is 25 percent. The firm is considering a project that has the same risk level as the firm's current operations. what is Sido Corp's WACC?
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