Petro ASA has 3 million shares outstanding. The stock is priced at 50 NOK per...
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Petro ASA has 3 million shares outstanding. The stock is priced at 50 NOK per share, and the companys debt is worth 80 MNOK. The company pays its bondholders 6% interest. The stock of the company has a beta of 1.25. The risk-free rate is 4% and market risk premium is 8%. The company pays 27% tax.
What is the companys weighted average cost of capital (WACC)?
a. 14.59%
b.10.65%
c.15.45%
d.12.00%
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