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help 1. Suppose your company, Student Co, is going public with debt of $5 million on 11/18/2021. Your company also has 2 million shares of
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1. Suppose your company, Student Co, is going public with debt of $5 million on 11/18/2021. Your company also has 2 million shares of common stock outstanding priced at $10 per share. What is the % weight of equity and debt should Student Co use in calculating WACC? 2. Suppose the debt of $5 million above provides a yield to maturity of 3.10% and that your tax rate is 20%. What is the effective cost of your debt? 3. For every $1000 borrowed in #2, Student Co pays in interest every year 4. For every $1000 borrowed, interest rate tax deduction is every year Step by Step Solution
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