Estimate the wacc for unitron

Reference no: EM133264446

Unitron Corporation has book equity equal to 100 and book debt equal to 100, with an implied book leverage (debt/assets) ratio of one-half. The ratio of market-to-book value of equity for the company is 2. The company's stock is traded on the NASDAQ stock exchange. Unitron has a cost of equity capital equal to 10% and a cost of debt capital equal to 6%. Assuming the tax rate is 40%, estimate the WACC for Unitron.

Reference no: EM133264446

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