What is the company cost of capital

Reference no: EM13255874

A company is 30% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company's common stock is 0.69.

a. What is the company cost of capital?
b. What is the after-tax WACC, assuming that the company pays tax at a 30% rate?

Reference no: EM13255874

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