Question
Calculate JHM Corporation's cost of equity (RE) and cost of debt (RD). Common stock: 2 million shares outstanding, market value of $30 per share, and
Calculate JHM Corporation's cost of equity (RE) and cost of debt (RD).
Common stock: 2 million shares outstanding, market value of $30 per share, and Beta = 1.5.
Market risk premium 7%, risk free rate 5%.
Tax rate: 34%Bonds: 80,000
bonds outstanding, $1,000 face value per bond, 7% annual coupon, and 10 years to maturity. Selling at 108.25% of face value.
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Startup CFO The Finance Handbook For Your Growing Business
Authors: Kyle Brennan
1st Edition
1790959403, 978-1790959402
