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. Given the following information for Gordon Corporation find the WACC. Equity Information: 70 million shares $50 per share Beta = 1.35 Market risk premium
. Given the following information for Gordon Corporation find the WACC. Equity Information: 70 million shares $50 per share Beta = 1.35 Market risk premium = 8% Risk-free rate = 6% Debt Information: $1 billion in outstanding debt (face value) Current quote = 110 (bond prices are quoted as a percent of par value) Coupon rate = 8%, semiannual coupons 20 years to maturity Tax rate = 40%
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
