What is the firm weighted average cost of capital

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(WACC) You’ve been asked to calculate the WACC for a mid-sized firm. The debt has $150 million face value of zero coupon debt with 10 years remaining maturity. The yield to maturity on similar debt is 4.20%. The firm has 70 million shares of stock outstanding trading at $10 per share. You were given a company tax rate of 35% and a firm beta of 1.2. If the expected return on the market is 7% and the risk-free rate is 1.5%, what is the firm’s weighted average cost of capital?

Reference no: EM131830379

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