You find this ad hoc wacc attempt and wish to improve it by


You find this ad hoc WACC attempt and wish to improve it by finding the most correct WACC from the following information. Taxes are 30%. Stock prices are $60 per share and the firm has 1000 shares outstanding. What is your WACC for this firm?

More Information: (Example) BV=Book Value

Current Liabilities BV=$40,000 Rate: 4% = .33 * 4%

Long term debt BV=$40,000 Rate: 6% = .33 * 6%

Common stock BV=$40,000 Rate: 11% = .33 * 11% AVERAGE = 7% = WACC

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