Orsquoconnell amp co expects its ebit to be 83000 every


O’Connell & Co. expects its EBIT to be $83,000 every year forever. The firm can borrow at 11 percent. O’Connell currently has no debt, and its cost of equity is 15 percent and the tax rate is 35 percent. The company borrows $144,000 and uses the proceeds to repurchase shares.

What is the WACC?

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Financial Management: Orsquoconnell amp co expects its ebit to be 83000 every
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