Question
22 10 points XYZ Inc. went public by issuing 1 million shares of common stock AED 25 per share. The shares are currently trading M
22 10 points XYZ Inc. went public by issuing 1 million shares of common stock AED 25 per share. The shares are currently trading M AED 30 per share. Current risk free rate is 4%, market risk premium and the company has a beta coefficient of 1.2. During last year, it issued 50,000 bonds of AED 1,000 par paying 10% coupon annually maturing in 20 years. Bond d is 10.6% The bands are currently trading at AED 950. The tax rate is 30%. Calculate the weighted average cost of capital. (10 Points), SNOW WORK FOR PARTIAL CREDIT a. What is Firm X's after-tax cost of debt to nearest one decima? (). % (2 points) b. What is Pirm X's cost of equity? to nearest one decimal? (b) % (2 points) c. What is Firm X's weight of debe? to nearest one decima? [e] d. What is the weight of equity? to nearest one decimal (4) % (2 points) e. What is Firm X's WACC7 to nearest two decimals? (el. For the toolbar, press ALT-F10 (PC) or ALT+FN+F10 (Mac) % (2 points) % (2 points) B 1 V S xx, Paragraph v Arial 30 v 14px a EB H
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