40% of a URC's funding comes from risk-free debt. The company's common stock has a beta of 0.5, a market risk premium of

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answerhappygod
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40% of a URC's funding comes from risk-free debt. The company's common stock has a beta of 0.5, a market risk premium of

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40% of a URC's funding comes from risk-free debt. The company'scommon stock has a beta of 0.5, a market risk premium of 8%, and aninterest rate of 10%. Suppose the company pays 20% tax on itsprofits. What is the company's after-tax WACC? Calculate youranswer as a percent rounded to 1 decimal place. (Do not roundintermediate calculations.)
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