Corporate Finance I: Measuring and Promoting Value Creation | Online Course Support

Consider the following data. The figures are in millions of dollars.Balance sheetCash 3000 Current liabilities 5000Other current assets 7000 Long-term debt 25000Non-current assets 50000 Equity 30000Income statementOperating income 6000Interest payment 2500Income before taxes 3500Taxes 1050Net income 2450If the required return on debt is 5%, the required return on equity is 12%, and the market value of equity is 80 billion dollars, the WACC is _________.

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