What is the company wacc

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Recently the yield on bonds similar to the ones that company has had fallen to 4.5%, so that the market value of the bonds is now about $707 million. The rate on company' short-term notes is equal the market's rate on these notes, which is 6%.

(a) What are the company's total invested capital and capital structure weights?

(b) What is the company's cost of equity according to CAPM, if the U.S. T-bond yield is 2.00 %, the long-term market risk premium is 7% and the company's levered beta is 1.2?

(c) What is the company's WACC?

Reference no: EM13910071

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