What is the current WACC for Costco? Assumptions As you recall, the formula for WACC is r WACC = (E/E+D) r E + D/(E+D) r D (1-T C ) The formula for the required return on a given equity investment is...

What is the current WACC for Costco? Assumptions As you recall, the formula for WACC is r WACC = (E/E+D) r E + D/(E+D) r D (1-T C ) The formula for the required return on a given equity investment is r i = r f + ß i * (R Mkt -r f ) R Mkt -r f is the Market Risk Premium. For this project, you may assume the Market Risk Premium is 4% unless you can develop a better number. r f is the risk free rate. The YTM on 10 year US Treasury securities is a good approximation. You may assume a corporate tax rate of 40%. Your calculated WACC. How data was used to calculate WACC. This would be the formula and the formula with your values substituted