Find Cisco weighted average cost of capital

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Question - Use the 10-year Treasury Bond rate as the risk-free rate and assume that the market risk premium is 6.5% to find Cisco's cost of equity.  Assume that Cisco's bonds are rated AAA and that Cisco's corporate tax rate is 21%.

Assume that Cisco's bonds have no floatation costs, but the cost of issuing equity is 3.5%. 

Find Cisco's weighted average cost of capital. Assume that the project will be financed with internal funds. 

You will need to find additional financial information from the Wall Street Journal and online at sites.

Reference no: EM133060332

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