You are interested in calculating the wacc of abc company


Question: You are interested in calculating the WACC of ABC Company. Its stock price is $8, and it has a debt to equity ratio of 1. ABC's cost of debt is 9%, its cost of capital is 12% and the company's tax rate is 40%. What is the company's WACC?

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Finance Basics: You are interested in calculating the wacc of abc company
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