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Given the following information for UARE Inc. Find the WACC. Tax rate 35 percent Debt: Bonds outstanding: 6000 Coupon on bonds: 4 percent Par value
Given the following information for UARE Inc. Find the WACC.
| Tax rate | 35 percent |
| Debt: | |
| Bonds outstanding: | 6000 |
| Coupon on bonds: | 4 percent |
| Par value of bonds: | $1000 |
| Bonds selling at what percent of par: | 105 |
| Bonds make coupon payments: | semi-annually |
| Years to maturity of bonds | 25 |
| Common Stock: | |
| Shares Outstanding: | 185,000 |
| Current price/share: | $58.00 |
| Beta: | 1.10 |
| Market Information: | |
| Risk premium: | 7 percent |
| Risk-free rate | 5 percent |
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Public Finance
Authors: Charles Francis Bastable
1st Edition
1375520083, 978-1375520089
