You find this ad hoc WACC attempt and wish to improve it by finding the most correct WACC from the following information. Taxes are 30%. Stock prices are $60 per share and the firm has 1000 shares outstanding. What is your WACC for this firm?
More Information: (Example) BV=Book Value
Current Liabilities BV=$40,000 Rate: 4% = .33 * 4%
Long term debt BV=$40,000 Rate: 6% = .33 * 6%
Common stock BV=$40,000 Rate: 11% = .33 * 11% AVERAGE = 7% = WACC