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Barrock Mining Corporation has 4 . 5 million shares of common stock outstanding and 7 5 , 0 0 0 9 . 5 % annual
Barrock Mining Corporation has million shares of common stock outstanding and annual
coupon bonds outstanding, par value $ each. The common stock currently sells for $ and has a beta
of The bonds have years to maturity and sell for of par. The market risk premium is
Treasury bills yield and the firms tax rate is
What is the weight of equity in the firm?
A
B
C
D
E
Pretend this firm is financed with a debttoequity ratio of What would be the firms WACC?
A
B
C
D
E
Please do not use excel to this problems. for question # : Make sure to find the right answer for cost of debt using the given bond and coupon price in order to look for WACC. Please do not assume the cost of debt as other expert calculated previously. I would like to get the right for cost of debt. Thank you.
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