Question
Here is some information about Stokenchurch Incorporated: Beta of common stock = 1.3 Treasury bill rate = 4% Market risk premium = 7.6% Yield to
Here is some information about Stokenchurch Incorporated:
Beta of common stock = 1.3
Treasury bill rate = 4%
Market risk premium = 7.6%
Yield to maturity on long-term debt = 5%
Book value of equity = $450 million
Market value of equity = $900 million
Long-term debt outstanding = $900 million
Corporate tax rate = 21%
What is the companys WACC?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
6th Edition
003025809X, 978-3540014386
