The firms equity beta is 12 risk free rate is 3 and market


Estimating the WACC: ABC Corp has a m arket 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 yield on firm's outstanding debt is 5%, what is ABC Corp's WACC after tax? Assume tax rate is 40% and use two equations which are in lecture slides. Show your work.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The firms equity beta is 12 risk free rate is 3 and market
Reference No:- TGS02689822

Expected delivery within 24 Hours