Problem
A corporation has the following financial data: (a) Sales of Rp. 100 billion, (b) COGS of Rp. 40 billion, (c) Operating & Managerial expenses of Rp. 10 billion, (d) Interest expenses of Rp. 1.5 billion, (e) Assets of Rp. 600 billion [60 % is fixed assets], and (f) Liabilities Rp450 billion [80% is current liabilities]. The applicable income tax rate is 15%. The beta of this corporation is 0.5 with a market return of 6%. Currently, the yield on 10-year government bonds is 7%, while this corporation has a bond yield of 4% above the yield on government bonds.
Do the calculations on this corporate WACC. Provide an analysis and brief explanation, whether the company's management has worked in accordance with the objectives of the company's establishment.