Question
10. TAFKAP Industries has 5 million shares of stock outstanding selling at $16 per share, and an issue of $30 million in 8.0 percent annual
10.
| TAFKAP Industries has 5 million shares of stock outstanding selling at $16 per share, and an issue of $30 million in 8.0 percent annual coupon bonds with a maturity of 15 years, selling at 105 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 14.5 percent. |
| What is TAFKAPs WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
| WACC | % |
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
