World 225_JE_06
Investment Banking Quantitative CalculationCalculate the weighted average cost of capital (WACC) for Golden Everest. Write back your reply, accounting for the following:
- Utilize the REIT structure mid case scenario for 2025E in the model.
- Presume the REIT pays 90% of its taxable income.
- Use the REIT's net debt level, instead of gross debt for WACC calculations, and presume the interest rate stays the same as the C-corp.
- The corporate tax rate is 15% for both C-corp and REIT.
- State the weighted average cost of capital as a percentage, round to 2 decimal places.
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