Homework $-$ Answered $-$ Due Dec $8$th$,11$:$59$ PM

A company has a beta of $0\mathrm{.}9,$ pre$-$tax cost of debt of $6\mathrm{.}6\%$ and an effective corporate tax rate of $22\%\mathrm{.}54\%$ of its capital structure is debt and the rest is equity. The current risk$-$free rate is $0\mathrm{.}5\%$ and the expected market risk premium is $6\mathrm{.}2\%.$ What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.

Type your numeric answer and submit