Question
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%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Essentials Of Statistics For Business And Economics
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
7th Edition
9781305081598
