A company is 48% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and

A company is 48% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and

the beta of the company’s common stock is .58.

a. What is the company cost of capital?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Cost of capital %

b. What is the after-tax WACC, assuming that the company pays tax at a 35% rate?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

After-tax WACC %

Show more

WE ALL KNOW CLASSWORK IS BORING. THUS, OUR ESSAY HELP SERVICE EXISTS TO HELP STUDENTS WHO ARE OVERWHELMED WITH STUDIES. ORDER YOUR CUSTOM PAPER FOR 20% DISCOUNT. USE CODE SAVE20