Thebe Corp.$\text{'}$s CFO provides you with the following information: there are $500,000$ shares of stock which current price is $15,65$ euros and which beta is $1,78.$ The balance sheet shows $4,000,000$ debt, and the company can borrow at a current rate of $6,89\%.$ This rate never changed in the recent years. Last dividend paid to shareholders was $2,24$ euros per share. The financial market is quite bullish and should have a $15,04\%$ return for the current year. Risk free rate is $2,68\%$ and the corporate tax rate is $1/3.$

Calculate Thebe's WACC $(\%,2$ decimal places$)$

Answer rating: 100% (QA)

To calculate Thebe Corps Weighted Average Cost of Capital WACC we need to know how much of the compa... View the full answer