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Calculate the wacc for optimus

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Reference no: EM133115390

Calculate the WACC for Optimus. As a reminder, Optimus is funded with 40% debt and 60% common stock; there is no preferred stock in the capital structure. The debt has an after-tax cost of 4%. Use the Optimus required rate of return on equity that you calculated using the CAPM (22%). Use a risk-free rate of 4.0%. Use 6.0% as the market risk premium.

Reference no: EM133115390

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