Black knight has debtequity ratio of 6 a beta of 112 a


Black Knight has debt/Equity ratio of .6, a Beta of 1.12, a stock price of 42/share, and a tax rate of 34%. The firm just paid an annual dividend of $0.80/share and plans to increase that amount by 3% annually in the future. The firm has pre tax cost of debt of 7.7%. The risk free rate is 3.8% and the market rate of return is 8.4%. What is Black Knights WACC?

A) 6.08%   B) 6.25%   C) 7.15%   D) 7.24%

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Financial Management: Black knight has debtequity ratio of 6 a beta of 112 a
Reference No:- TGS01262881

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