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Calculate the WACC for Aya Ltd, using the following: Debt : 5,000 outstanding, 6% semi-annual coupon bonds, with 25 years to maturity and selling for
Calculate the WACC for Aya Ltd, using the following:
Debt: | 5,000 outstanding, 6% semi-annual coupon bonds, with 25 years to maturity and selling for 105; |
Common Stock: | 175,000 shares outstanding, selling for $58.00 per share, with a beta of 1.10 |
Market: | equity risk premium of 7% and 5% risk free rate. |
Tax Rate: | 35% |
Question 30 options:
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a) | 9.62% |
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b) | 5.63% |
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c) | 10.39% |
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d) | None of these answers. |
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e) | 9.63% |
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