A company is trying to work out the appropriate cost of capital to use in its capital project evaluations. It has identi

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answerhappygod
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A company is trying to work out the appropriate cost of capital to use in its capital project evaluations. It has identi

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A company is trying to work out the appropriate cost of capital
to use in its capital project evaluations. It has identified the
following information about its current capital structure:
The current marginal corporate tax rate is 25%. The company’s
Beta is 1.2 and the estimated Market Risk Premium is 6%. The
current long term Government Bond rate is 9%.

What is the company's Weighted Average Cost of Capital (WACC)?
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