6. WACC Table 19.3 shows a book balance sheet for the Wishing Well Motel chain. The compa- ny's long-term debt is secured by its real estate assets, but it also uses short-term bank loans as a permanent source of financing. It pays 10% interest on the bank debt and 9% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $90 per share. The expected return on Wishing Well's common stock is 18%. is tow VO Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is 21%. Mar Cash and marketable securities Accounts receivable Inventory Current assets Real estate Other assets Total 100 200 200 50 350 2,100 150 2,600 Bank loan Accounts payable Current liabilities Long-term debt Equity Total 280 22. 120 400 1,800 400 2,600 on A

6. WACC Table 19.3 shows a book balance sheet for the Wishing Well Motel chain. The company's long-term debt is secured by its real estate assets, but it also uses short-term bank loans as a permanent source of financing. It pays 10% interest on the bank debt and 9% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $90 per share. The expected return on Wishing Well's common stock is 18%. Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is 21%