Question
10 year of projects. Has 20-year bond trading on the bond market that matures in 10 years with market yield of 1.25% Rate of return:
10 year of projects.
Has 20-year bond trading on the bond market that matures in 10 years with market yield of 1.25%
Rate of return: 11%
Yield to Maturity of 3.75%.
20% tax bracket
Beta: 0.75.
If the company seeks new capital investment with a 75% debt and 25% equity split, what would be your estimate of its WACC? also calculate the cost of debt and cost of equity
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
9781119754053
