FINC 5310-A company uses 2 things to finance the capital budget
June 7th, 2024
A company uses 2 things to finance the capital budget. Company estimates that the WACC is 15% The capital structure is 75% debt and 25% internal equity. Before tax cost of debt is 15% and tax rate is 20%. Risk free rate is 6% and market risk premium is 8%. What is the beta of the company?