how do I calculate WACC with the following formula? rWACC = (E/E+D) rE + D/(E+D) rD...

how do I calculate WACC with the following formula?

rWACC = (E/E+D) rE + D/(E+D) rD (1-TC)

Assume the Market Risk Premium is 5%, The risk free rate is normally the yield on US Treasury securities such as a 10-year treasury. For this assignment, please use 3.5%. You may assume a corporate tax rate of 40%.

Equity is 59.75Billion

Debt is 30.28Billion

Beta is .68

Please show me how to do the calculations and which numbers go where in the formula to achieve the answer.

Solutions

Expert Solution

cost of debt is not given. so we assume = risk free rate = 3.5%

jeff jeffy answered 5 months ago

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