A company is 30% financed by risk-free debt. The interest rate is 6%, the expected market risk premium is 7%, and the beta of the company's common stock is 1.2. What is the after-tax WACC, assuming that the company pays tax at 25%?
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- A company is 48% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and the beta of the company's common stock is 0.58. What is the after-tax WACC, assuming that the company pays tax at a 35% rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. After-tax WACC 13.06 %attachedAlpha Inc.'s beta coefficient is 1.4, the risk-free rate is 10 percent, and the market risk premium is 5 percent. Based on the capital asset pricing model (CAPM), what should be Alpha's cost of retained earnings? 11% 17% 16% 12%
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