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You are thinking about opening a smoothie kiosk. You found a publicly traded comparable firm,...

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Accounting

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You are thinking about opening a smoothie kiosk. You found a publicly traded comparable firm, Jucee Inc., which has an equity beta of 1.28 and currently has 25% leverage. You plan to run your kiosk with 15% leverage D/(D+E). The market risk premium is 5.00%, the risk-free rate is 2.00%, and your cost of debt is 2.00%. The corporate tax rate is 21%. Assume all debt betas are zero. What will your WACC be for the new smoothie kiosk

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