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You want to estimate the Weighted Average Cost of Capital (WACC) for Costco Corp. The companys tax rate is 21% and it has the equity
You want to estimate the Weighted Average Cost of Capital (WACC) for Costco Corp. The companys tax rate is 21% and it has the equity beta of 0.9. Its debt value is $14,727 million and the equity market value is $138,394 million. Its interest expense is $150 million. Assume that the risk-free rate is 3% and the market return is 10%. Based on the information, compute the WACC for Costco.
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