Business
Business, 10.03.2020 16:59, mawawakaiii

Currently, Forever Flowers Inc. has a capital structure consisting of 35% debt and 65% equity. Forever's debt currently has a 9% yield to maturity. The risk-free rate (rRF) is 5%, and the market risk premium (rM - rRF) is 7%. Using the CAPM, Forever estimates that its cost of equity is currently 11%. The company has a 40% tax rate.
What is Forever's current WACC? Round your answer to two decimal places.

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Answers: 2

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Currently, Forever Flowers Inc. has a capital structure consisting of 35% debt and 65% equity. Forev...

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