What is the company wacc

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Question: You have come up with the following data concerning ‘Zion' Company.

• The company has 2,500,000 shares.

• The company's debt is 90% from the company market value. The interest rate paid last year by the company was $500,000.

• The company paid total dividend of $800,000 last year, which is 25% of its pre-tax profit, and its expected growth next year is in $50,000 more.

• The company paid tax in the amount of 950,000.

• The cost of capital requested by the investors is 13%. What is the company's WACC?

Reference no: EM131477118

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