Solution-Required return on equity

Required return on equity

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Reference no: EM133118292

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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Required return on equity

Reference no: EM133118292

Reference no: EM133118292

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