Question
6 Resto Carp is going to launch a new project. The manager needs to calculate the WACC of the company with the following information: Bento
6 Resto Carp is going to launch a new project. The manager needs to calculate the WACC of the company with the following information:
Bento las 12,000 outstanding bonds which make semiannual payments The coupon rate is 8%, Pr vale iS1.000. There arel0 years to maturity. The bonds are selling for $985.
Assume the company's tax rate is 30%. It also has 350,000 shares outstanding common shares, sling fir 560 per share; the beta is 1.2, market risk premium is 10% and risk-free rate is 5%.
Sid per stare.
Bento issued 50,000 outstanding referred shares of 5% preferred dividend,
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