Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need it done ASAP Palantir has 370 bonds outstanding with a $1,000 face value. They have a stock price of $68 with 12,200 shares outstanding,

Need it done ASAP

Palantir has 370 bonds outstanding with a $1,000 face value. They have a stock price of $68 with 12,200 shares outstanding, a beta of 1.3 and just paid a dividend of $3. The risk free rate is 2% and the market risk premium is 7.177%. The pretax cost of debt is 5.99% and the bonds sell for 95.1% of par value. The tax rate is 39%, what is the WACC of Palantir?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Analysis and Portfolio Management

Authors: Frank K. Reilly, Keith C. Brown

10th Edition

538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387

More Books

Students also viewed these Finance questions

Question

=+ b. What is the per-worker production function, y = f(k)?

Answered: 1 week ago