Calculate the cost of capital for operations (WACC) for ACME, Inc. Use the capital asset pricing model to estimate the cost of equity capital.
U.S. Government long-term bond rate 2.80%
Market risk premium 5.00%
Equity beta 1.04
Per-share market price $65.00
Shares outstanding 20.0 million
Net financial obligations on balance sheet $700.0 million
Weighted-average borrowing cost 7.6%
Statutory tax rate 21.0%