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Myers Corporation is currently all equity financed and has a value of $90 million. Investors currently require a return of 16.80 percent on common stock.
Myers Corporation is currently all equity financed and has a value of $90 million. Investors currently require a return of 16.80 percent on common stock. Myers pays no taxes. Myers plans to issue $30 million of debt with a return of 5.9 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions. Enter your response below. Number million A firm currently has a debt-equity ratio of 0.8. The debt, which is virtually riskless, pays an interest rate of 7%. The expected rate of return on the equity is 14 %. What is the weighted Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer. WACC = Number
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