Question
Here is some information about Stokenchurch Incorporated: Beta of common stock = 1.9 Treasury bill rate = 4% Market risk premium = 8.2% Yield to
Here is some information about Stokenchurch Incorporated:
Beta of common stock = 1.9
Treasury bill rate = 4%
Market risk premium = 8.2%
Yield to maturity on long-term debt = 5%
Book value of equity = $510 million
Market value of equity = $1,020 million
Long-term debt outstanding = $1,020 million
Corporate tax rate = 21%
What is the companys WACC?
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
