Question: answer a and b please $65.4 billion, and it has $701 million worth of debt with a yield to maturity of 6.5%. Your tax rate
answer a and b please
$65.4 billion, and it has $701 million worth of debt with a yield to maturity of 6.5%. Your tax rate is 22% and you use a market risk premium of 5.1% in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC is 12.3% and the computer sales division represents 38% of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is (Round to two decimal places.)
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