How does a higher beta affect WACC and why?
How does a drop in the bond market effect WACC and why?
What is the WACC for a public utility given the following
information: beta: 0.8, expected rate of return on the S&P 500:
12.4%, risk-free rate (T-bill yield): 4%, yield to maturity on
long-term bonds: 7.2%, required rate of return on preferred stock:
7.5%, common equity ratio: 60%, debt ratio: 30%, preferred stock
ratio: 10% and an effective corporate tax...