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home / study / business / finance / finance questions and answers / if wild widgets, inc., were an all-equity company, it would have a beta of 1.3. the company ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: If Wild Widgets, Inc., were an all-equity company, it would have a beta of 1.3. The company has a... If Wild Widgets, Inc., were an all-equity company, it would have a beta of 1.3. The company has a target debtequity ratio of .4. The expected return on the market portfolio is 10 percent, and Treasury bills currently yield 3.9 percent. The company has one bond issue outstanding that matures in 20 years and has a coupon rate of 8.8 percent. The bond currently sells for $1,170. The corporate tax rate is 35 percent.

a. What is the companys cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of debt 7.17 correct %

b. What is the companys cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity 13.04 correct %

c. What is the companys weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC 11.00 incorrect %

Only missing WACC the other's are right

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