Non public : Rukaiya has a D/E ratio of 1.5, a before-tax cost of debt...
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Non public : Rukaiya has a D/E ratio of 1.5, a before-tax cost of debt of 6%, and a marginal tax rate of 35%. Public Firm: Tastelicious Foods is a publicly traded company that operates only in the confectionaries industry and has a D/E ratio of 2 , an equity beta of 0.7, and a marginal tax rate of 40%. The risk-free rate is 4.5% and the expected return on the market is 11%. Calculate the appropriate WACC that Rukaiya should use to evaluate the risk of entering the confectionaries business
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