Question
On January 1, the totalmarket value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million
On January 1, the totalmarket value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firms present market value capital structure, shown below, is considered to be optimal. There is no short-term debt.
Debt $30,000,000
Common equity $30,000,000
Total capital $60,000,000
if the company need issue common stock to the public at current market price and the flotation cost is 10% of the issue's gross proceeds,what is its WACC?
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
