Question:

Suppose you are analyzing a company with the following

Last updated: 1/12/2023

Suppose you are analyzing a company with the following

Suppose you are analyzing a company with the following characteristics If the risk free is 3 and the expected market risk premium is 6 what is this company s WACC Answer in percent showing two decimal places Market value of debt 500 million Market price of each share 20 Number of shares outstanding 75 million Tax rate 18 The average yield on current debt pre tax cost of debt 4 Beta 1 5