1.) SASSY Corp. stock has a beta of 1.2, the current risk-free rate is 6 percent, and the expected return on the market is 14.50 percent. What is Diddy’s cost of equity? (Round your answer to 2 decimal places.)

2.) Suppose that TapDance, Inc.’s, capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 10 percent, while its cost of equity is 15 percent. Assume the appropriate weighted average tax rate is 34 percent. What will be TapDance’s WACC? (Round your answer to 2 decimal places.)

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Solution Solution 1 Given Beta 12 Current risk free rate 6 ... View the full answer