Its stock beta is 150 and standard deviation of weekly


Estimate Flyers Company's WACC based on the following information. 

  • Its stock beta is 1.50; and standard deviation of weekly stock returns based on the last year's data is 25%
  • Risk free rate is 1.2%; the expected market return is 6.35%.
  • Its total debt is 60 million, with an average cost of debt of 4.35%
  • Its current stock price is $45.00, with 4 million shares outstanding, among which insiders hold about 10% of total shares outstanding.
  • Its tax rate is 30%.

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Finance Basics: Its stock beta is 150 and standard deviation of weekly
Reference No:- TGS02355346

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