8. Your company's beta is 1.5 and market is 9%. In the same time
treasury bill...
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8. Your company's beta is 1.5 and market is 9%. In the same timetreasury bill return is 4%. You have $300,000 Equity in the firm.You have $200,000 debt in your firm. The before tax cost of debt is6%. The average tax rate is 40%. What is weighted average cost ofcapital of your firm?
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Solution weighted average cost of capital is 834 Working Notes For calculation of WACC weighted average cost of capital The cost of debt is 6 After tax
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