A firm has 45000000 in debt and 120000000 in equity the, Ask an Expert

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A firm has 45,000,000 in Debt and 120,000,000 in Equity. The cost of debt is 5.7%. The market premium risk is 7.11% and the expected return on the market is 10.21%. The firm's beta is currently 0.74. FOr every 10,000,000$ in increased debt, teh firm's beta increases by 0.30, while the cost of debt increases by 1%. If the firm rearranged their capital structure to include 75,000,000$ in debt, what would be the firm's WACC then? The tax rate is 35%. Show your work

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Financial Management, Finance

Category:- Financial Management
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