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Having public debt constituting 25% of its capital structure, Company TRV has only one bond traded in the secondary market with a YTM of 6%.
Having public debt constituting 25% of its capital structure, Company TRV has only one bond traded in the secondary market with a YTM of 6%. What is the WACC for company TRV? Assume that risk free the marginal tax rate of 25%,risk free-rate (rf) is 3%, andmarket return(rm) is 10%.Beta is 1.2 and Size premium for micro-cap firms is 4.08%.
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