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please, i need your help witb both Qualex Building Co. has a cost of common equity of 11.0%. Its before-tax cost of debt is 5.0%
please, i need your help witb both
Qualex Building Co. has a cost of common equity of 11.0%. Its before-tax cost of debt is 5.0% and it has a marginal tax rate of 25%. If the market value of its debt is $430,000 and it has 19,000 shares of stock outstanding and stock price per share of $53.00, what is the company's weighted average cost of capital (WACC) using market value weights? 7.77% (B) 8.83% (C) 9.19% (D) 10.23% 11.22% Question 7 Calder Technologies Inc. bonds are yielding 5.0% today. If the premium on its stock relative to its bond returns is 4.0%, what is the company's cost of common equity using the bond yield plus risk premium approach? 9.00% (B) 9.50% (C) 9.80% (D) 10.00% 10.60% Step by Step Solution
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