Calculate the WACC for Optimus. As a reminder, Optimus is funded with 40% debt and 60% common stock; there is no preferred stock in the capital structure. The debt has an after-tax cost of 4%.

Use the Optimus required rate of return on equity that you calculated using the CAPM (6.2%).

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for Optimus we need to consid... View the full answer