What is abc corps wacc after tax assume tax rate is


Estimatin the WACC: ABC Corp has a stock market capitalization of $120 million, and $30 million in outstanding debt.

The firm's equity beta is 1.2, risk free rate is 3% and market risk premium is 4%.

The firm's outstanding debt: Face value is $1000, price of debt is $980 per bond, coupon rat eis 3% annual, and the rmaining term to maturity is 8 years.

What is ABC Corp's WACC after tax? Assume tax rate is 40%. Show work.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is abc corps wacc after tax assume tax rate is
Reference No:- TGS02819950

Expected delivery within 24 Hours