Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer in excel. thank you At 2018 ABI Construction has a face debt value of 20.59M trading at 87% with a pre-tax weigthed cost

please answer in excel. thank you
image text in transcribed
At 2018 ABI Construction has a face debt value of 20.59M trading at 87% with a pre-tax weigthed cost of 6.22%. ABI common equity for the year was valued at 118.46M and preferred equity for 11.04M. The Preferred equity rate was calculated to be 8.86%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.37 Beta If the tax rate is 39%. What is this firm's WACC

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_2

Step: 3

blur-text-image_3

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

Banker To The World

Authors: William Rhodes

1st Edition

0071704256, 978-0071704250

More Books

Students also viewed these Finance questions