IMB Inc. assets and liabilities total $600 MM and $180 MM, respectively; its cost of debt = 6%. IMB Inc.’s stock Beta = 1.20, and the return on underlying market(s) = 9%. You notice that 90-day Treasury Bills pay 4%, while local municipal bonds yield 5%. Last year, IMB Inc. paid $20 MM in taxes on earnings before taxes of $100 MM- what is IMB Inc.’s WACC?

Answer rating: 100% (QA)

WACC 006 180600 120 009 420600 0092 or 92 Further Explanation WACC i... View the full answer