Question
Given the following information for ONAIR Co., find the WACC. Assume the companys tax rate is 35 percent. Show all work. Debt - 10,000, 5%
Given the following information for ONAIR Co., find the WACC. Assume the companys tax rate is 35 percent. Show all work.
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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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
