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Correct Inc. is a publicly traded firm with 100 million diluted shares outstanding trading at $37.50 per share.The company has $1 billion of debt outstanding
Correct Inc. is a publicly traded firm with 100 million diluted shares outstanding trading at $37.50 per share.The company has $1 billion of debt outstanding with a cost of debt at 6.5% at a marginal tax rate of 40%.The company has $100 million of cash on its balance sheet. What is the enterprise value of Correct Inc.?
Using the same information from before, please calculate the WACC of Correct Inc. assuming a risk free rate of 2.5%, a company Beta of 1.2 and a market risk premium of 6%.
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