Question
Hilton Corporation has 1 million shares of common stock outstanding and 175,000 bonds with 6% coupon at $1000 par each. The stock currently sells at
Hilton Corporation has 1 million shares of common stock outstanding and 175,000 bonds with 6% coupon at $1000 par each. The stock currently sells at $53 per share and has a beta of
1.15; the bonds have 25 years to maturity and sell at $1141. The market risk premium is 6.8% and Treasury bills are yielding 3.1%. If Hiltons corporate tax rate is 21%, what is the
companys cost of capital (WACC)?
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Stochastic Volatility In Financial Markets Crossing The Bridge To Continuous Time
Authors: Antonio Mele, Fabio Fornari
1st Edition
0792378423, 1461545331, 9780792378426, 9781461545330
