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Given the following information for Gamma Technologies Berhad (GTB), find the WACC. Assume the tax rate is 35 percent. Debt: 2,5007.75 percent coupon bonds outstanding,
Given the following information for Gamma Technologies Berhad (GTB), find the WACC. Assume the tax rate is 35 percent. Debt: 2,5007.75 percent coupon bonds outstanding, RM1,000 par value, 8 years to maturity, selling for 103 percent of par; the bonds make annual payments. Common Stock: 75,000 shares outstanding selling for RM50 per share, the beta is 0.85. Preferred Stock: 10,000 shares of 5 percent preferred stock outstanding, currently Market: 5 percent market risk premium and 6 percent risk-free rate. Hints: First, find market value (MV) of these sources of financing (MVDebt;MVEquity; and MVPreferred Stock), then calculate the value of the firm (V). You also need to calculate YTM for the bond
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