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Fawaz Abdulaziz Alhokair Company reported the following balance sheet: Cash 14 Accounts payable 42 Receivables 70 Other current liabilities 28 Inventories 280 Total CL Total
Fawaz Abdulaziz Alhokair Company reported the following balance sheet: Cash 14 Accounts payable 42 Receivables 70 Other current liabilities 28 Inventories 280 Total CL Total CA 364 Long-term debt (20 bonds) Net fixed assets 126 Common equity Total assets 490 Total liab. and equity 70 140 280 420 1. The stock is currently selling for SAR 21 per share and there are 100 shares outstanding 2. Its bonds are 13-year bonds with 9% coupon rate paid annually and the face value of SAR 100. They are currenty selling at SAR 80 3. The required rate of return on its common stock is 13%. 4. Assume the firm's tax rate is 40%. What is the WACC for Al Hokair Company using market value weights? a. The WACC is %. (Round to two decimal places.)
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