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What is an estimate of this firm wacc

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Reference no: EM132504527

Assume that ZYZ Inc. plan to invest a total of $4,000,000 to fund a project using two sources of financing:

Common equity in the amount of $3,000,000

20-year bonds in the amount of $1,000,000

If the XYZ Inc.'s cost of equity is 11 percent, cost of debt is 3 percent and the tax rate is 24 percent, what is an estimate of this firm's WACC?

Reference no: EM132504527

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