Xyz corp has equity beta 18 and market value of equity 230


XYZ Corp. has equity beta 1.8 and market value of equity $230 million. The required return on XYZ’s debt is 7.8%. The market value of that debt is $250 million and the book value is $240 million. The risk-free rate is 6% and the expected return on the market is 9.9%; the tax rate of this company is 40%. What is XYZ’s WACC?

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Financial Management: Xyz corp has equity beta 18 and market value of equity 230
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