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The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 7% coupon rate and
The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 7% coupon rate and a current price quote of 900 DOLLAR WITH FLOATING COST OF 2% the bonds have 8 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and 30 years to maturity. Preferred Stock: 100,000 shares of 5% preferred stock with a current price of $78, and a par value of $100. Common Stock: 1,800,000 shares of Common Stock; the current price is $75. And the beta of the stock is 1.2 Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk-free rate is 4% SHOW CALCULATION OF THE COST OF DEBT PS AND C.S AND HOW YOU CALCULATED THE WEIGHT The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 7% coupon rate and a current price quote of 900 DOLLAR WITH FLOATING COST OF 2% the bonds have 8 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and 30 years to maturity. Preferred Stock: 100,000 shares of 5% preferred stock with a current price of $78, and a par value of $100. Common Stock: 1,800,000 shares of Common Stock; the current price is $75. And the beta of the stock is 1.2 Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk-free rate is 4% SHOW CALCULATION OF THE COST OF DEBT PS AND C.S AND HOW YOU CALCULATED THE WEIGHT
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