Barrock Mining Corporation has 4 . 5 million shares of common stock outstanding and 7 5 ,
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Question:
Barrock Mining Corporation has million shares of common stock outstanding and annual
coupon bonds outstanding, par value $ each. The common stock currently sells for $ and has a beta
of The bonds have years to maturity and sell for of par. The market risk premium is
Treasury bills yield and the firms tax rate is
What is the weight of equity in the firm?
A
B
C
D
E
Pretend this firm is financed with a debttoequity ratio of What would be the firms WACC?
A
B
C
D
E
Please dont use excel, show me the formulas and how the numbers came to be
I dont want to see random work. I will make sure to upvote if you do it right.
Answer is B and E respectively if that helps. Thank you
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