What is the wacc

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Valentine Foundations, Inc. (VF) is a zero-growth company that currently has zero debt, and it has the data shown below.

EBIT           =                              $80,000

Growth        =                              0%

Orig cost of equity, rs =              10.0%

No. of shares =                          10,000

Price per share =                        $60.00

Tax rate   =                                   25%

Question 1: Refer to the data for Valentine Foundations, Inc. (VF). What is the WACC (weighted average cost of capital), and show how you calculated it.

Reference no: EM132461831

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