Exhibit 10.1 Awame that you have been hired as a consultant by car, a major producer of chemicals and plastics, including platio grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below NE Aasta Net plant, property, and equipment $38,000,000 S101.000.000 5139.000.000 Liabilities and Equity Accounts payable $10,000,000 Accruali $9.000.000 Current liabilities $19,000,000 Long-term dutt (40,000 boods, 51.000 par value) 540.000.000 Tous liabilities 552.000.000 Common stock (10,000,000 shares) $30,000,000 Retained can 550.000.000 Total shacholders equity SNO.000.000 Total listin and shareholders' equity $119.000.000 The stock is currently selling for 517 35 per share, and its noncallable 53,319.97 par value, 20-year, 1.70% bonds with remiannual payments are selling for 51.00. The beta is 129, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 30-year Treasury bond is 5 50. The required return on the stock market is 11.50%. bit the market has had an average return of 14 50% during the past years. The im's tax rate : 40% Refer to Philit 10.1. What is the best estimate of the firm's WACC Do not round your intermediate calculation Exhibit 10.1 Awame that you have been hired as a consultant by car, a major producer of chemicals and plastics, including platio grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below NE Aasta Net plant, property, and equipment $38,000,000 S101.000.000 5139.000.000 Liabilities and Equity Accounts payable $10,000,000 Accruali $9.000.000 Current liabilities $19,000,000 Long-term dutt (40,000 boods, 51.000 par value) 540.000.000 Tous liabilities 552.000.000 Common stock (10,000,000 shares) $30,000,000 Retained can 550.000.000 Total shacholders equity SNO.000.000 Total listin and shareholders' equity $119.000.000 The stock is currently selling for 517 35 per share, and its noncallable 53,319.97 par value, 20-year, 1.70% bonds with remiannual payments are selling for 51.00. The beta is 129, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 30-year Treasury bond is 5 50. The required return on the stock market is 11.50%. bit the market has had an average return of 14 50% during the past years. The im's tax rate : 40% Refer to Philit 10.1. What is the best estimate of the firm's WACC Do not round your intermediate calculation
