Question
23. Alpha Consulting has 10,000 shares outstanding currently priced at $20 per share. They also have 500 bonds outstanding with a semiannual payment and a
23. Alpha Consulting has 10,000 shares outstanding currently priced at $20 per share. They also have 500 bonds
outstanding with a semiannual payment and a coupon rate of 7%. The bonds currently sell at par and have
10 years to maturity. The beta of the company is 0.9 and the market risk premium is 4%. Treasury bills
currently yield 7%. Ignore the effect of taxes. What is the WACC of the company
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
