Adjusted WACC. Ashman Motors is currently an all-equity firm. It has two million shares outstanding, selling for $45 per share. The company has a beta of 1.2, with the current risk-free rate at 3.2% and the market premium at 7.4%. The tax rate is 30% for the company. Ashman has decided to sell $45 million of bonds and retire half its stock. The bonds will have a yield to maturity of 7.9%. The beta of the company will rise to 1.7 with the new debt. What was Ashman's adjusted WACC before selling the bonds? What is its new WACC after selling the bonds and retiring the stock with the proceeds from the sale of the bonds? Hint: The weight of equity before selling the bond is 100%. What was Ashman's adjusted WACC before selling the bonds? 12.08% (Round to two decimal places.) What is its new WACC after selling the bonds and retiring the stock with the proceeds from the sale of the bonds? % (Round to two decimal places.)

Adjusted WACC. Ashman-Motors is currently an all-equity firm. it has two milion shares outstanding, selling for S4S per shara. The company has a beta of 12 with the current risk-free rate at 3.2% and the market premium at 7.4%. The tax rate is 30%6 for the comparty: Ashman has decidod to sell 545 thalion co bonds and rebic halt its stock. The bonds wil have a yeild to maturity of 7.9%. The beta of the company will rise to 1.7 with the new dobt: What was Astimanis adjunted WacC before selling the bonds? What is its new WACC aher soling the bonds and rotiring the stock wath the proceods from the sale of the bonds? Hint: The aebight of ecuaty betore-selling the bond is 100%