Question
Below is a simplified balance sheet for Rensselaer Felt. Calculate this companys WACC. The debt has just been refinanced at an interest rate of 6%
Below is a simplified balance sheet for Rensselaer Felt. Calculate this companys WACC. The debt has just been refinanced at an interest rate of 6% (short term) and 8% (long term). The expected rate of return on the companys shares is 15%. There are 7.46M shares outstanding, and the shares are trading at $46. The tax rate is 35%. (Figures in thousands)
Cash and marketable Securities | 1,500 | Short term Debt | 75,600 |
Accounts Receivable | 120,000 | Accounts payable | 62,000 |
Inventories | 125,000 | Current Liabilities | 137,600 |
Current assets | 246,500 | Long Term Debt | 208,600 |
Property, plant, equipment | 302,000 | Deferred Taxes | 45,000 |
Other Assets | 89,000 | Shareholders equity | 246,300 |
Total | 637,500 | Total | 637,500 |
I need all formulas shown.
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