Question
A company's share price is $30, the book value of its' equity is $111 million, it has 18 million shares outstanding and the beta of
A company's share price is $30, the book value of its' equity is $111 million, it has 18 million shares outstanding and the beta of its' shares is 0.4.
The company's outstanding net debt has a market value of $112 million with a 7.3% yield-to-maturity.
The risk free rate is 5.0% and the expected market risk premium is 6.9%.
What is the company's WACC assuming a corporate tax rate of 27%?
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
