Question
Given the following information for ONAIR Co., find the WACC. Assume the companys tax rate is 35 percent. Debt 10,000, 5% semi-annual payment coupon bonds
Given the following information for ONAIR Co., find the WACC. Assume the companys tax rate is 35 percent.
| Debt | 10,000, 5% semi-annual payment coupon bonds outstanding. $1,000 par value, 30 years to maturity. Selling for 98% of par value. |
| Common Stock | 500,000 shares outstanding, selling for $70 per share, the beta is 1.2 |
| Market | 8% market risk premium and 4% risk-free rate |
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
