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Required return on equity

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Your company's required return on debt is 6%, its tax rate is 30%, and its required return on equity is 10%. The company has 20 billion dollars of debt, and book equity is 10 billion dollars. The stock price is 10 dollars a share, and the company has 5 billion shares outstanding. The company's WACC is _________.

Return on Debt

6%

ROE

10%

Tax Rate

30%

Debt

20,000 

Book equity

10,000 

Stock price

10 

Shares Outstanding

5,000 

WACC

 

NOTE: I am having trouble making the excel formula that gives the answer to this question given the information provided. Would you please include what the formula looks like so I can make a WACC calculation tool in excel, please?

Reference no: EM133118292

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