Business

Reuben Mcguire

25 July, 05:28

One company has a beta of 1.1 and debts of $ 1,500. The market value

of its shares that same year was $ 17.40 each, and there were 200 shares issued. The cost

of the debt, before the IR, charged the company is 7.2% a. a. Government bonds offer

a rate of 6% per annum, and the IR rate is 34%. The market risk premium is

of 5%. Estimate the total cost of capital (WACC) in the current capital structure.

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