Company abc has debt of 300m market value with a ytm of 7


Question: Company ABC has debt of $300M (market value) with a YTM of 7%, and its equity market value is $700M with a beta of 1.5. If the market risk premium is 5% and the risk free rate is 3%, what is the Company ABC's WACC? Assume a tax rate of 40%. (Enter your answer as a percentage, i.e. if your answer is 5.25%, enter your answer as 5.25, not 0.0525. Round two to decimal places at the end).

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Finance Basics: Company abc has debt of 300m market value with a ytm of 7
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