Question
Global has a total (i.e. debt + equity) market value of $120 million. The firm has one class of debt with 30,000 bonds outstanding. The
Global has a total (i.e. debt + equity) market value of $120 million. The firm has one class of debt with 30,000 bonds outstanding. The face value is $1000, the coupon rate is 11% (with annualcoupon payments), the maturity is 6 years, and the current yield to maturity is 9.21%. Tax rate is 21% and the firm has just recently paid a dividend of $4/share. Its current share price is $40 and the dividends are expected to grow at 3% per year indefinitely.a) What is the firms WACC?b) How many shares does it have outstanding?
a) What is the firms WACC?
b) How many shares does it have outstanding?
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Complete Business Statistics
Authors: Amir Aczel, Jayavel Sounderpandian
7th Edition
9780071077903, 73373605, 71077901, 9780073373607, 77239695, 978-0077239695
