Question
Here is some information about Stokenchurch Incorporated: Beta of common stock = 2.1 Treasury bill rate = 4% Market risk premium = 7.4% Yield to
Here is some information about Stokenchurch Incorporated:
Beta of common stock = 2.1
Treasury bill rate = 4%
Market risk premium = 7.4%
Yield to maturity on long-term debt = 9%
Book value of equity = $430 million
Market value of equity = $860 million
Long-term debt outstanding = $860 million
Corporate tax rate = 21%
What is the companys WACC?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
