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Calculate the wacc for a firm whose capital consists

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Question - Calculate the WACC for a firm whose capital consists of 50 million shares trading at $2.50 per share and debt with a market value of $300 million. The firm's equity has a beta of 1.4 and its debt is trading at a yield-to-maturity of 4% p.a. The risk-free interest rate is 1% p.a. and the expected return on the market portfolio is 8% p.a. You may assume that the company pays tax at 30%.

Reference no: EM133144423

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