Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Find the WACC for HHH Inc. using the following: Number long term debt 10,000 common stock 250,000 r RF 3.70% Net Income $2,000,000 Price 106.00%
| Find the WACC for HHH Inc. using the following: | ||||||||
|
Number | long term debt 10,000 | common stock 250,000 | rRF | 3.70% | Net Income | $2,000,000 | ||
| Price | 106.00% | $23.60 | MRP | 5.50% | b | 1.005 | ||
| Par | $1,000.00 | $1.00 | g | 5.50% | ||||
| Coupon | 9.50% | T | 21.50% | |||||
| n | 23 | infinite | ||||||
| m | 2 | |||||||
| n=years | ||||||||
| MRP=market risk premium | ||||||||
| g=growth rate | ||||||||
| T=tax rate | ||||||||
| B=stocks beta | ||||||||
| Rrf=risk free rate | ||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
