9. A firm has outstanding debt of 300 crore in its books. The market value of debt

Question:

9. A firm has outstanding debt of 300 crore in its books. The market value of debt is 95 per cent of its book value and the yield to maturity is 10 per cent. The firm's share is selling at 90 and it has 5 crore shares outstanding. Shareholders expect a rate of return of 20 per cent on their investment. The corporate tax rate is 34 per cent. What is the firm's WACC?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: