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Given the information provided here, what is this firm's WACC? coupon rate on company bonds = 4.0% years until maturity on the bonds = 16
Given the information provided here, what is this firm's WACC?
- coupon rate on company bonds = 4.0%
- years until maturity on the bonds = 16
- current price of company bonds = $813.98
- recent stock price = $29.10
- dividend expected at the end of the next period= $1.60
- annual growth rate of dividend = 3.5%
- average effective tax rate over past five years = 27.0%
- total liabilities = $750 million
- total shareholders' equity = $450 million
- no preferred stock
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