Food Processing | Instruments | |
Rf | 2.80% | 2.80% |
Market Risk Premium | 6% | 6% |
Tax Rate | 37% | 37% |
Average Beta | 0.64 | 1.14 |
We | 0.8 | 0.8 |
Wd | 0.2 | 0.2 |
Food Processing | Instruments | |
Cost of equity = Rf + beta x mrp | 6.64% | 9.64% |
Cost of Debt after Tax | 2.58% | 2.90% |
WACC (Hurdle Rate) = D/D+E * Cost of after tax debt + E/D+E * Cost of Equity | ||
WACC = Hurdle Rate | 5.83% | 8.29% |
How would i go about finding the hurdle rate of both the Food Processing and Instruments...