Rose Inc. has a market value debt to-value ratio of 30%. Rose's pre-tax borrowing cost on new long-term euro-denominated debt is 5%. Rose's beta relative to MSCI's world stock market index is 1.2. The euro risk-free rate is 3%. The risk premium on the MSCI world stock market is 6%. Interest is deductible in France at the marginal corporate income tax rate of 35%. What is Rose's weighted average cost of capital?

Answer rating: 100% (QA)

To calculate Rose Incs weighted average cost of capital WACC we need to consider the cost of equity ... View the full answer