Question
Compute its WACC: My company that I will be giving you is Electronic Enthusiast. They are an electronics store where you can buy a variety
Compute its WACC:
My company that I will be giving you is Electronic Enthusiast. They are an electronics store where you can buy a variety of products. The capital structure of my company, Electronic Enthusiast is funded with 20% debt. 80% common stock with 10 million in shares of common stock. Electronic Enthusiast has 10 million shares of common stock selling at $10 per share. They have a debt of 30K bonds maturing at 4 years at 7% annual coupon bonds with a face value of $1000. The annual dividend is $1.97 the future dividend expected to grow at a 3% annual rate with a marginal tax rate of 37%. What is the WACC of Electronic Enthusiast?
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