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ABC Corp has a market value of $10 million and a market value of its debt is $8 million. It has a book value of equity at $3 million and book value of debt at $2 million. The beta of the company's stock is 1.75, The risk free rate of 2%, and the expected risk premium of the market is 9% The coupon rate on the company's debt is 4% and the Yield to Maturity is 6%. The tax rate is 30%

What is the required rate of return for ABC Corps' stock and estimate the the company's WACC.

Reference no: EM131429246

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