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Suppose you are estimating the WACC for Georgia Inc. It has the following data from its
balance sheet: total debt =$220 million; total equity=$120 million. It has 20 million shares
outstanding, and its stock is trading at $42 per share. Your analysis shows that the company's
current borrowing rate is 7%, and that the cost of equity is 13%. If the company marginal tax rate
is 30% what is its WACC?

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Suppose you are estimating the WACC for Georgia Inc. It has the foll.pdf

  • 1. Suppose you are estimating the WACC for Georgia Inc. It has the following data from its balance sheet: total debt =$220 million; total equity=$120 million. It has 20 million shares outstanding, and its stock is trading at $42 per share. Your analysis shows that the company's current borrowing rate is 7%, and that the cost of equity is 13%. If the company marginal tax rate is 30% what is its WACC?