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WACC Comparables - 2 If it were unlevered, the overall firm beta for Wild Widgets Inc. (WWI) would be 1.3. WWI has a target debt/equity
WACC Comparables - 2 If it were unlevered, the overall firm beta for Wild Widgets Inc. (WWI) would be 1.3. WWI has a target debt/equity ratio of 0.4. The expected return on the market is 0.08, and Treasury bills are currently selling to yield 0.05. WWI one-year bonds (with a face value of $1,000) carry an annual coupon of 7% and are selling for $906.96. The corporate tax rate is 39%.(Round your answers to 2 decimal places before the percentage sign. (e. 10.23%)) a. WWI's before-tax cost of debt is 17.98 %. b. Wwl's cost of equity is D % c. WWI's weighted average cost of capital is %
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