A company's capital structure is 80% equity and the remainder is debt. The shares have a beta of 2.10, the expected return on the market is 11% and the risk free rate is 5%. The company's bonds have a yield to maturity of 10%. The taxation rate is 30%. What is the company's weighted average cost of capital (WACC)? 

Answer rating: 100% (QA)

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