Question
Exercise 4.) WACC The total book value of Attrexs equity is $192 million, and book value per share is $20. The stock has a market-to-book
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Exercise 4.) WACC
The total book value of Attrexs equity is $192 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 12%. The firms bonds have a face value of $25 million and sell at a price of 108% of face value. The yield to maturity on the bonds is 4.9%, and the firms tax rate is 25%. Find the companys WACC.
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Study Guide To Accompany Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Mark Simonson
1st Edition
0321388682, 9780321388681
