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Amazing company Ltd . has 8 . 2 million shares of common stock outstanding and 1 9 5 , 0 0 0 semi - annual
Amazing company Ltd has million shares of common stock outstanding and semiannual bonds outstanding with a face value of $ and a coupon rate. The common stock currently sells for $ per share and has a beta of and the bonds have years to maturity and sell for of face value. The market risk premium is Tbills riskfree yield and the company's tax rate is
a What is the firm's market value capital structure?
b Estimate the firm's cost of equity, and after tax cost of debt.
c Estimate the company's total cost of capital.
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