Question
Company has tax rate of 40%. -Debt: 5,000 7.8% coupon bonds outstanding. $1,000 par value. 20 years to maturity, selling for 107 percent of par,
Company has tax rate of 40%.
-Debt: 5,000 7.8% coupon bonds outstanding. $1,000 par value. 20 years to maturity, selling for 107 percent of par, bonds make semi annual payments.
-Common stock: 500,000 shares outstanding , selling for $68 per share: the beta is 1.11.
-Market: 9 percent market risk premium and 5.8 percent risk free rate
what is the WACC?
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
