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Based on the following information, compute the companys weighted average cost of capital (WACC): CAPM...

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Accounting

Based on the following information, compute the companys weighted average cost of capital (WACC): CAPM estimated
required return of 10.0%, equity book value of $22 per share and market value of $20 per share with 300 million fully
diluted shares outstanding. The companys current cost of debt is 5%, book value of debt is $8.1 billion, market value is
$6.0 billion and they have a tax rate of 20%.
a.9.7%
b.8.4%
c.7.0%
d.8.8%

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