Question
If World Wide Enterprise (WWE) were an all-equity company, it would have a beta of 0.85. The company has a target debt-to-equity ratio of 0.40.
If World Wide Enterprise (WWE) were an all-equity company, it would have a beta of 0.85. The company has a target debt-to-equity ratio of 0.40. The expected return on the market portfolio is 11%, and treasury bills currently yield 4%, The company has one bond issue outstanding that matures in 20 years and has a 7% coupon rate. The bond currently sells for $1,080. The par value of the bond is $1,000. The corporate tax rate is 34%.
a. what is the companys cost of debt?
b. what is the companys cost of equity?
c. What is the companys Weighted Average Cost of Capital (WACC)?
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Crypto Technical Analysis It S More Than A Chart
Authors: Charles G. Koonitz
1st Edition
1989118690, 978-1989118696
