Question
Given the following information, what is WBM Corporation's WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3 Bonds:
Given the following information, what is WBM Corporation's WACC?
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Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3
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Bonds: 10,000 bonds outstanding, $1,000 face value each, 8% annual coupon, 22 years to maturity, market price = $1,101.23 per bond.
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Market risk premium = 8. 6%, risk-free rate = 4. 5%, marginal tax rate = 34%
| A. | 12.19% | |
| B. | 7.89% | |
| C. | 9.90% | |
| D. | 13.30% | |
| E. | 15.78% |
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
2nd Edition
0072318252, 9780072318258
