Write a paper Evaluating Midland Corporation’s Weighted Average Cost of Capital (WACC) and its Implications on Investment Decision Making.
Assignment Question WACC of Midland Corporation: Amount Risk – free rate 4.66% Market risk premium 5.00% Beta 1.25 Cost of equity 10.91% Interest expense $11,08,10,00,000 Net debt $79,50,80,00,000 Cost of debt 13.94% D/E ratio 59.30% Tax rate 21.00% WACC 10.95% The above calculation shows that the WACC of Midland Corporation is estimated at 10.95%. further, … Read more