Lululemon Athletica's share is currently trading at $50, and its market capitalization is $7 million. The firm's beta is 1.5, the risk-free rate is 2.4%, and the market risk premium is 6%. The firm has 5000 bonds outstanding.The face value of each bond is $1000 and will mature in 10 years.The coupon rate is 8%, and the coupon is paid on an annual basis.The bonds aretrading at 110% of the face value.The firm's tax rate is 35%.

What is Lululemon's WACC?If Lululemon were an unlevered firm, then what would be its WACC?

Answer rating: 100% (QA)

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