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Below you are given information on Efaw, Inc.s capital structure as well as information on Efaws stock and bonds. Compute Efaws cost of capital. Capital
Below you are given information on Efaw, Inc.s capital structure as well as information on Efaws stock and bonds. Compute Efaws cost of capital.
Capital Structure | |
Book Value of Debt | $2,000,000,000 |
Market Value of Debt | $2,500,000,000 |
Book Value of Equity | $3,500,000,000 |
Market Value of Equity | $4,000,000,000 |
Stock Info | |
Beta | 1.32 |
Risk Free Rate | 1.25% |
Market Risk Premium | 7.50% |
Cost of Issuing Equity | 5% |
Bond Info | |
Coupon Rate | 6% |
Years of Maturity | 22 |
Par Value | $1,000 |
Price of Bond | $963.75 |
Cost of Issuing Debt | 2.50% |
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