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Determining the firm''s wacc

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Riskfree rate              0.02               Market rate                   0.15                 Tax rate           0.30

1. A company has $2,000,000 of debt maturing in ten years. The debt rating is B. The company also has $4,000,000 in stock whose beta is 0.70. What is this firm's WACC?

2. A firm has $10,000,000 of debt and $21,000,000 in equity. The debt is maturing in thirty years and has a AAA rating. The stock has a beta of 0.90. What is this firm's WACC?

Reference no: EM132418408

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