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Answer in Excel format please, thank you! 10. Consider the following information for Federated Junkyards of America. Debt: $82,000,000 book value outstanding. The debt is
Answer in Excel format please, thank you!
10. Consider the following information for Federated Junkyards of America. Debt: $82,000,000 book value outstanding. The debt is trading at 88% of book value. The yield to maturity is 11%. Equity: 3,200,000 shares selling at $49 per share. Assume the expected rate of return on Federated's stock is 20%. Taxes: Federated's marginal tax rate is Tc = 0.21. Calculate the weighted-average cost of capital (WACC)Step by Step Solution
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