Explore BrainMass
Share

WACC

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

The corporation has no debt but can borrow at 7%. The firms WACC is currently 10% with no corporate tax.

1. So what's the cost of equity?

2. Whats the cost of equity at 30% or 60% and what's the WACC?

Thanks for the help!

© BrainMass Inc. brainmass.com September 19, 2018, 2:34 pm ad1c9bdddf - https://brainmass.com/business/weighted-average-cost-of-capital/79504

Solution Summary

The corporation has no debt but can borrow at 7%. The firms WACC is currently 10% with no corporate tax. This solution responds to the questions: So what is the cost of equity? What is the cost of equity at 30% or 60% and what's the WACC?

$2.19