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
Posted: Wed Jul 06, 2022 6:45 pm
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 its profits. What is thecompany's after-tax WACC? Calculate your answer as a percentrounded to 1 decimal place. (Do not round intermediatecalculations.)
Suppose the company pays 20% tax on its profits. What is thecompany's after-tax WACC? Calculate your answer as a percentrounded to 1 decimal place. (Do not round intermediatecalculations.)