A company has debt of $317 million and 43 million shares of common stock outstanding with a value of $13.4 each. You estimate that the company could issue new debt at an interest rate of 3.8%. The company's tax rate is 17.0%, the beta is 1.0, the risk-free rate is 1.0%, and the expected market return is 6.4%. What is the company's weighted average cost of capital (WACC)?

Answer rating: 100% (QA)

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