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What is the wacc for xyz inc

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Reference no: EM132802644

Problem 1: XYZ Inc. has $10 million of equity and $5 million of bonds with YTM of 5 percent per year. Beta is 2, market return is 12 percent, tax rate is 30 percent and the risk-free rate is 3 percent. What is the WACC for XYZ Inc?

A. 12.25%

B. 19.16%

C. 17.44%

D. 15.16%

Reference no: EM132802644

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