Solution-Calculating the wacc, Calculating the WACC. Gnomes

Calculating the wacc

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Question: Calculating the WACC. Gnomes R Us is considering a new project. The company has a debt-equity ratio of .48. The company's cost of equity is 11.8 percent, and the aftertax cost of debt is 5.6 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +3 percent. What is the WACC it should use for the project?

Reference no: EM131732765

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Calculating the wacc

Reference no: EM131732765

Reference no: EM131732765

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