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please answer completely and correctly all questions thanks ssignment ezto.rnheducation.com/hm.tpx?--0.1078400059186092_1516423006136 value: 10.00 points If Wild Widgets, Inc., were an all-equity company, it would have a
please answer completely and correctly all questions thanks
ssignment ezto.rnheducation.com/hm.tpx?--0.1078400059186092_1516423006136 value: 10.00 points If Wild Widgets, Inc., were an all-equity company, it would have a beta of 1.15. The company has a target debt-equity ratio of .6. The expected return on the market portfolio is 10 percent, and Treasury bills currently yield 3.6 percent. The company has one bond issue outstanding that matures in 20 years and has a coupon rate of 8.2 percent. The bond currently sells for $1,140. The corporate tax rate is 35 percent. a. What is the company's cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of debt b. What is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) Cost of equity c. What is the company's weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC References eBook & Resources Worksheet Section 18 2 Flow to Equity Approach Difficulty: 1 Basic Section 18 3 Welghted Average Cost of MethpdStep by Step Solution
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