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Firm XYZ has the debt outstanding below and the following information. a- What is the cost of capital of the firm. b- What would be

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Firm XYZ has the debt outstanding below and the following information. a- What is the cost of capital of the firm. b- What would be the value of the firm if it had no debt Bond Book Value Bond YTM Bond Maturity 1,283,400 909,075 1,674,000 Bond Current Price 96.1224 97.6119 96.7182 3.1696 2.7196 8.3296 3/1/2021 3/15/2022 8/15/2025 XYZ Stock price XYZ Shares outstanding XYZ Beta 3-month Treasury bill rate Market risk premium XYZ Tax rate $32.55 139,500 0.837 1.86% 6.5196 32.5596 Firm XYZ has the debt outstanding below and the following information. a- What is the cost of capital of the firm. b- What would be the value of the firm if it had no debt Bond Book Value Bond YTM Bond Maturity 1,283,400 909,075 1,674,000 Bond Current Price 96.1224 97.6119 96.7182 3.1696 2.7196 8.3296 3/1/2021 3/15/2022 8/15/2025 XYZ Stock price XYZ Shares outstanding XYZ Beta 3-month Treasury bill rate Market risk premium XYZ Tax rate $32.55 139,500 0.837 1.86% 6.5196 32.5596

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