Question
I am needing to find the WACC for Drug Corp using the info provided below: Common stock: 300, shares outstanding, selling for $30 a share.
I am needing to find the WACC for Drug Corp using the info provided below:
Common stock: 300, shares outstanding, selling for $30 a share. Beta is 0.85
Preferred Stock: 50, 000 shares outstanding, selling for $65 a share. The stock pays a $5 annual dividend.
Debt: 9, 000 8 percent coupon bonds outstanding selling at 1115 percent of par. Current YTM is 6.5%
Market: 8 percent market risk premium and 2.5 percent risk free rate.
Please help show all work as I am stuck.
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
