Question
A company has $317 million of debt and 43 million common shares outstanding worth $13.4 each. You estimate that the company could issue new debt
A company has $317 million of debt and 43 million common shares outstanding worth $13.4 each. You estimate that the company could issue new debt at an interest rate of 3.8%. The companys tax rate is 17.0%, beta is 1.0, the risk-free rate is 1.0% and the expected market return is 6.4%. What is the companys weighted average cost of capital (WACC)?
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Bitcoin From Theory To Practice
Authors: Alessio Barnini ,Alessandro Aglietti ,Nathalie Jeanne Schwitter ,Stefania Pizzichi ,Caterina Bonistalli
1st Edition
979-8601742344
