Question: Continuing with Question 1, assume the global beta is 1.1 and the expected return on a world market portfolio is 12%. What is the weighted

Continuing with Question 1, assume the global beta is 1.1 and the expected return on a world market portfolio is 12%. What is the weighted average cost of capital (WACC) if we use the global beta and world market portfolio? Assume the same proportion of debt and the same tax rate.

.1099 or 10.99%
.1189 or 11.89%
.1389 or 13.89%
.1232 or 12.32%

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