Compute the wacc of a hypothetical firm

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Reference no: EM133349501

Question: Compute the WACC of a hypothetical firm, if you know the return in the market, the risk free rate, the cost of debt and unlevered bheta are . 12, .02, .08 and 1, and the weights of debt and equity are 40% and 60%, respectively domestically. In the foreign nation, respective values are .14, .04, .1, 1.3, 70% and 30%. Assume debt and equity of the project abroad are .7 and . 3. Additionally, assume .8 is financed abroad and .2 is financed in the US of the total debt.

Reference no: EM133349501

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