Question
General Horizon Inc. has the following information pertinent to their capital structure. They want to keep their WACC at 8%. What should be the number
General Horizon Inc. has the following information pertinent to their capital structure. They want to keep their WACC at 8%. What should be the number of outstanding shares? The tax rate is 25%. Round your answer to the nearest whole number.
| Semi-annual Bond | |
| Years to maturity | 4.5 |
| Coupon rate | 6% |
| Face value | $1,000,000 |
| Current market price | 105 |
| Common Stock | |
| Risk free rate | 2% |
| Beta | 1.5 |
| Current market price | $55 |
| Market risk premium | 5% |
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Financial And Insurance Formulas
Authors: Tomas Cipra
2010th Edition
3790829013, 978-3790829013
