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Calculate the WACC CAPM Information: 10 million shares Stock price $60 per share Beta = 1.40 Required stock market return = 9% (Rm) 10-year Treasury
| Calculate the WACC | |
| CAPM Information: | |
| 10 million shares | |
| Stock price $60 per share | |
| Beta = 1.40 | |
| Required stock market return = 9% (Rm) | |
| 10-year Treasury YTM = 4% (Rrf) | |
| Debt Information: | |
| Only 1 bond outstanding | |
| Issue 1: | |
| Total market value $400 million | |
| Current price = $1,071.06 | |
| Coupon rate = 7%, semiannual coupons | |
| 10 years to maturity | |
| Tax rate = 40% | |
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Introductory Econometrics For Finance
Authors: Chris Brooks
4th Edition
110843682X, 9781108436823
