Question
Please show all work and make sure the answer is A,B, or C below to be correct. Thanks Given the following information for UARE Inc.
Please show all work and make sure the answer is A,B, or C below to be correct. Thanks
Given the following information for UARE Inc. Find the WACC.
Tax rate 35 percent
Debt: Bonds outstanding: 6000 Coupon on bonds: 6 percent Par value of bonds: $1000 Bonds selling at what percent of par: 105 Bonds make coupon payments: semi-annually Years to maturity of bonds 25 Common Stock: Shares Outstanding: 185,000 Current price/share: $58.00 Beta: 1.10 Market Information: Risk premium: 7 percent Risk-free rate 5 percent
A.) WACC = 9.35%
B.) WACC = 8.68%
C.) WACC = 10.08%
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