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Your CFO wants to know what the WACC would be if you used the T-bill rate of 2% and used the cost of common equity

  1. Your CFO wants to know what the WACC would be if you used the T-bill rate of 2% and used the cost of common equity based on CAPM. Recalculate the cost of common equity under CAPM and indicate what WACC would be with this revision.

    a.

    8.87%
    b.

    10.99%
    c.

    15.35%
    d.

    none of the other options.

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