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A company has 7 million ordinary shares outstanding and the book value per share is $8. The company also has 4400 bonds issue outstanding and
A company has 7 million ordinary shares outstanding and the book value per share is $8. The company also has 4400 bonds issue outstanding and each bond has a face value of $25,000, The tax rate is 30 per cent. Find the following: 1- What are the company's capital structure weights, the equity and debt? (12 marks) 2- What is the company's WACC if the cost of equity is 10.02% and the cost of dept (YTM) is 4.02%
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