What is the difference in the company wacc

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Thunderstruck Energy is a North American oil company. Its current cost of debt is 7.43%, and the 10-year U.S. Treasury Yield is 3%. The expected return of the Market is 13.38%. The company's effective tax rate is 30%. The targeted capital strucutre of the firm is 43% debt. The firm's domestic beta is 1.6, but after factoring in global energy prospects the firm's beta is estimated as 1. What is the difference in the company's WACC if the international beta is used as opposed to the domestic only beta?

Reference no: EM133118878

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