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The interest rate on 5 years treasury bonds is 2.9%, and 10 years treasury bond is 3%.

risk premium rate on the US maarket is 4.2 %, average tax rate is expected to be 15%.

beta = 1.6 (from FINRA quotes), market value of stock = $27.59 billion (from FINRA), assuming market value of its debt = $7.5 billion

What would the WACC of the company we discussed if it used 100% equity financing?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93061454

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