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Answer d and e please Q1) Suppose a firm has 37.20 million shares of common stock outstanding at a price of $48.97 per share. The
Answer d and e please
Q1) Suppose a firm has 37.20 million shares of common stock outstanding at a price of $48.97 per share. The firm also has 220000.00 bonds outstanding with a current price of $933.00. The outstanding bonds have yield to maturity 7.49%. The firm's common stock beta is 1.908 and the corporate tax rate is 37.00%. The expected market return is 12.33% and the T-bill rate is 1.29%. Compute the following: a) Weight of Equity of the firm (2 points) b) Weight of Debt of the firm (2 points) c) Cost of Equity of the firm (2 points) d) After Tax Cost of Debt of the firm (2 points) e) WACC for the Firm (2 points) Step by Step Solution
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