Question
A firm with 40 million shares outstanding, priced at 8, has just paid l dividend. Dividends expected to grow at 5% p.a. I.5 million bonds
A firm with 40 million shares outstanding, priced at 8, has just paid l dividend.
Dividends expected to grow at 5% p.a. I.5 million bonds outstanding, at 100 each
Yield to maturity of 8%
Corporate Tax at 30%
1) What is the pre-tax WACC?
2) What is the after-tax WACC?
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Multinational Financial Management
Authors: Alan C Shapiro, Paul Hanouna
11th Edition
1119559901, 9781119559900
