Assume a firm has 60% in equity capital and 40% in debt. The firm's beta is 1.2
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Assume a firm has 60% in equity capital and 40% in debt. The firm's beta is 1.2 and the risk free rate is 3% while the market premium is 6%. The firm's cost of debt is 5% and the firm has amarginal tax rate of 20%.
What is the firm's WACC?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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