A company generated a return of 5.5%. As per the latest annual report, the company has an outstanding debt of $50.0 million and common equity valued at $70.0 million. During that period the company has incurred $2.0 million as interest expense on its debt. On the other hand, the risk-free rate of return is 1.5%, the market return is 4.0% and the company’s beta is 1.2x. Calculate WACC based on the given information.

A company generated a return of 5.5%. As per the latest annual report, the company has an outstanding debt of $50.0 million and common equity valued at $70.0 million. During that period the company...

A company generated a return of 5.5%. As per the latest annual report, the company has an outstanding debt of $50.0 million and common equity
valued at $70.0 million. During that period the company has incurred $2.0 million as interest expense on its debt. On the other hand,
the risk-free rate of return is 1.5%, the market return is 4.0% and the company’s beta is 1.2x. Calculate WACC based on the given information.

Jun 04, 2022

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