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Weighted Average Cost of Capital Given the following calculate the WACC. Beta Equity Risk Premium 5.5% Pre-tax Yield on Debt 5.0% Return on the Bond

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Weighted Average Cost of Capital Given the following calculate the WACC. Beta Equity Risk Premium 5.5% Pre-tax Yield on Debt 5.0% Return on the Bond Market 4.0% Return on the Stock Market 9.0% Risk Free Rate 3.5% Tax 26.5% Weight of Debt in the Total Capital Structure 33.0% Weight of Equity in the Total Capital Structure 67.0%

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