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Acompany Star gives you the following data. Compute WACC. STOCK: nominal value 25 USD, market value 40 USD, dividend at the beginning of the year

Acompany Star gives you the following data. Compute WACC.

  • STOCK: nominal value 25 USD, market value 40 USD, dividend at the beginning of the year 5 USD, growth rate 2%, a company issued 20,000 pieces of stock.
  • BONDS: nominal value 50 USD, market value 40 USD, interest rate 10%, the company issued 5,000 pieces, number of years to maturity 11. Tax rate 20%.

Then evaluate the following project:

Cash flow

0 (50,000)

1 30,000

2 20,000

3 15,000

4 10,000

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