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please explain Sapp Trucking's balance sheet shows a total of non-callable $45 million long-term debt with a coupon rate of 7% and a yield to
please explain
Sapp Trucking's balance sheet shows a total of non-callable $45 million long-term debt with a coupon rate of 7% and a yield to maturity of 6%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current market value of equity (stock price) is $20 per share. Additionally, stockholders' required return is 12.6%, and the firm's tax rate is 40%. What is the company's WACC based o market value weighting? Your answer should be between 9.72 and 12.50 , rounded to 2 decimal places, with no speci characters Step by Step Solution
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