A company is trying to work out the appropriate cost of capital to use in its capital project evaluations. It has identi
Posted: Tue Nov 23, 2021 8:59 am
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)?
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)?