Question
Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is 5 million with 10- year maturity, semi-annual bond
Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is 5 million with 10- year maturity, semi-annual bond pricing at $780 now. The coupon rate is 7%. This company has a Beta of 1.3, risk free rate is 3% and SP 500 index return is 10% now. With a tax rate 40%, please calculate the WACC.
(a) how much is cost of debt? (In decimal format)
(b) how much is cost of equity?(same format)
(c) what is WACC? (Same format)
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a Cost of DebtKd RATE2070780100095 with a period of 20 coupon of 70 PV at ...
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
