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Equity Information Debt Information 40 million shares $1 billion in outstanding debt (Face) $20 per share $1.1 billion market value of debt Beta = 1.1
Equity Information | Debt Information |
40 million shares | $1 billion in outstanding debt (Face) |
$20 per share | $1.1 billion market value of debt |
Beta = 1.1 | Coupon rate = 5% |
Market Risk Premium = 8% | Annual Coupons |
Risk Free Rate = 5% | 20 years to maturity |
| Corporate Tax Rate is 40% |
Using the information above, please answer the following questions and please follow the workbook we used in class to tackle these types of problems.
What is the company's WACC?
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