Question
A firm issued 45million shares, which currnetly sell for $90 per share. risk free rate is 4.9%, Rm=14.1%.and Be=1.03. Debt for the firm consisst of
A firm issued 45million shares, which currnetly sell for $90 per share. risk free rate is 4.9%, Rm=14.1%.and Be=1.03. Debt for the firm consisst of bonds, which currently quote at 107, having a coupon rate of 9.25% paid semi annually, have a 15.5 YTM, and have a face value of outstanding debt of 1 BIllion.
A:What is the cost of equity and debt?
B:what is the weighted average cost of capital?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Food And Beverage Cost Control
Authors: Lea R. Dopson, David K. Hayes, Jack E. Miller
4th Edition
0471694177, 978-0471694175
