Question
Please answer the questions in Excel and show how it is done with formulas. CBA Corp. has 8 million shares of common stock outstanding. The
Please answer the questions in Excel and show how it is done with formulas.
CBA Corp. has 8 million shares of common stock outstanding. The current share price is $75.00. They just paid a dividend of $4.00 and the dividend growth rate is expected to be 6.0% from not on. The company has one bond issuance that matures in 21 years, has a total face value of $85 million, a 7.0% semiannual coupon, and it currently sells for 97 percent of par. What are the companys capital structure weights on a market value basis? What is the companys market value debt to equity ratio? If the tax rate is 21.0%, what is the companys WACC?
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