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BOMInIng Corporation has 9.3 million shares of common stock outstanding and 127.000 semi-annual bonds outstanding with a face value of $1.000 and a 6.5% coupon
BOMInIng Corporation has 9.3 million shares of common stock outstanding and 127.000 semi-annual bonds outstanding with a face value of $1.000 and a 6.5% coupon rate. The common stock currently sells for $342 per share and has a beta of 1.18. and the bonds have 13 vears to maturity and sell for 108% of face valuc. The market risk premium is 6 9%. T-bills (risk-free) yield 5%, and the company's tax rate is 40% What is the fir's market value canital structure? b) Estimate the firm's cost of equity, and after tax cost of debt. (c) Estimate the company's total cost of capital
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