SIROM Scientific Solutions has $5 million of outstanding equity and $5 million of bank debt. The bank debt costs 4%


SIROM Scientific Solutions has $5 million of outstanding equity and $5 million of bank debt. The bank debt costs 4% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm’s tax rate is 35%.


Leave a Reply

Your email address will not be published.