A Company Is 36% Financed By Riskfree Debt The Interest Rate Is 9% The Expected Market Risk Premium Is 7% And


A company is 36% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and

the beta of company’s common stock is 0.63. What is the after-tax WACC, assuming that the company pays tax at a 34% rate?