What is wacc after tax

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Reference no: EM132025486

Estimatin the WACC: ABC Corp has a stock market capitalization of $120 million, and $30 million in outstanding debt.

The firm's equity beta is 1.2, risk free rate is 3% and market risk premium is 4%.

The firm's outstanding debt: Face value is $1000, price of debt is $980 per bond, coupon rat eis 3% annual, and the rmaining term to maturity is 8 years.

What is ABC Corp's WACC after tax? Assume tax rate is 40%. Show work.

Reference no: EM132025486

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