plesse can compute WACC for this question.

AND EXPLAIN HOW A FIRM's wacc can be useful in prospective analysis.

Z points The capital structure of Arlington, Inc. Includes $3,000,000 of 7% bonds and $12.000.000 of common stock. Additional information Arlington's beta=0.8 The treasury bond (risk-free) rate = 1.4% The market risk premium - 6% The current tax rate -30% 1 2 points The capital structure of Arlington, Inc. includes $3,000,000 of 7% bonds and $12,000,000 of common stock. Additional information Arlington's beta=0.8 The treasury bond (risk-free) rate - 1.4% The market risk premium 6% The current tax rate - 30%