ABC company has a capital structure with debt and equity. Debt - $50 million face value bonds maturing in 15 years with a coupon rate of 4% paid semi-annually. Similar bonds are selling at 97.5. Equity - There are 2,000,000shares outstanding. The investor's return is 10%. The next dividend is $3.5 with a growth rate of 4% into the future. Tax rate is 30%. Given the following information, calculate its WACC

Answer rating: 100% (QA)

Answer Calculating ABC Companys WACC We can find the Weighted Average Cost of Capital WACC using the following steps 1 Cost of Debt Kd Market Price Bo... View the full answer