Problem:
GGG has a current price of $695. It also has 328 million shares outstanding and the long-term debt of $2,986 million. The company's equity beta is 1.23. Its tax rate is 21%. Assume that the risk free rate is 0.5% and the market return is 14%. The company's cost of debt is 8%.
Requirement:
Question: Compute the weighted average cost of capital (WACC) for GGG.
Note: Show all workings.