Question
1. The total book value of WTCs equity is $14 million, and book value per share is $28. The stock has a market-to-book ratio of
1. The total book value of WTCs equity is $14 million, and book value per share is $28. The stock has a market-to-book ratio of 1.5, and the cost of equity is 9%. The firms bonds have a face value of $10 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 5%, and the firms tax rate is 21%. What is the companys WACC?
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
