Question
A U.S based MNC raises 463 million in debt to finance its total capital needs of $180 million || Its has a tax rate of
A U.S based MNC raises 463 million in debt to finance its total capital needs of $180 million ||
Its has a tax rate of 40% || debt is the form of 5 year || 7% semiannual bonds with a face value of 1,000 || selling at $913.39, S.D of company return = 22% p.a. || Correlation Coeficient : .40 || Expected Return : 18% p.a. || SD of global stock market : 28% p.a. || RFR : 7% p.a.
suppose the correct answer for beta is .6 , what is the cost of equity?
the answer is 13.6 but i need the math please
if equity is 16 and cost of debt is 10 what is the WACC? of the MNC
the answer is 12.50 I just need the math
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