Question
homedeport and ravi have 14000 shares of common stock outstanding at market price of $29/share. pays annual dividend of $5/share forever has 150 bonds outstanding
homedeport and ravi have 14000 shares of common stock outstanding at market price of $29/share.
pays annual dividend of $5/share forever
has 150 bonds outstanding with face value of $1,000/bond.
bond got 15% coupon - pay interest semiannually - mature in 20 years. - trading to yield at 9%. tax rate is 37%.
What is homedeport and ravi WACC?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
