Mad Computers, Inc has got the following capital structure: A 441,6 M (million) bond issuance and several
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Mad Computers, Inc has got the following capital structure: A €441,6 M (million) bond issuance and several different loans that amount to €122,8 M, whose average interest rate is 8,24%. Additionally, it has got a €106,2 M preferred stock issuance that pays a fixed 9,2% coupon. And last, there is equity (capital + retained earnings) worth €97,1 M, whose required return is 16,4%. Please compute the WACC of Mad Computers if the company is subject to a 40% income tax bracket.
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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