A company is financed with $500 million in equity and $475 million in debt. yield to maturity on the bonds issued by the company is 7.85%. The tax rate is 40%. The firm has a beta of 1.15. The risk-free rate is 5% and the market risk premium is 9%.  calculate the weighted average cost of capital of this company.

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC for the company we need to consider the cost ... View the full answer