Task: Determine the WACC for the Firm.
Calculate your 'best' estimate of the Weighted Average Cost of Capital (WACC) for the firm. In order to complete this task, you will need to do the following:
Determine the cost of debt: Please explain the approach and procedure you use to make this determination.
Determine the cost of equity: Please explain the approach and methodology you use in making this determination.
Determine the capital structure of the firm: Determine the market value of the firm's debt and equity.
Explain your result and discuss how the firm will use this WACC.