Question

A company has a market value of equity of $599 million and a market value of...

A company has a market value of equity of $599 million and a market value of debt of $400 million. What is the company's WACC (to two decimal places) if the company's cost of equity is 8.2%, its pre-tax cost of debt is 5.6% and the corporate tax rate is 30%?

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Answer #1

Weighted average cost of capital = 6.5%

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