Question
Company X has Capital Structure compromised of 3.5 Billion in debt-Comprimosed entirely of bonds with a 5% coupon rate and 4.5%YTM and a $4Billion in
Company X has Capital Structure compromised of 3.5 Billion in debt-Comprimosed entirely of bonds with a 5% coupon rate and 4.5%YTM and a $4Billion in equity. US Govs T-Bonds are trading at a rate of 1.85% and the historic Market return is 9.6%. Company Xs beta is 0.74. the tax rate is 35%
A. What is Company Xs Cost of Equity?
B.Whats Company Xs WACC?
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The Financial System Financial Regulation And Central Bank Policy
Authors: Thomas F. Cargill
1st Edition
1107035678, 9781107035676
