Develop the Weighted Average Cost of Capital (WACC) for a business Case Study Requirements Given the following

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Question:

Develop the Weighted Average Cost of Capital (WACC) for a business Case Study Requirements Given the following inputs and assumptions, estimate the WACC for Gallo Distributors, Inc Riskfree rate 1 Equity risk premium 5 Beta 85 Size Premium 6 Company Specific Risk Premium 1 Pretax borrowing rate 55 Fair Market Value of Debt to Fair Market Value of Invested Capital 20