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Please show work. Thank you in advance Given the following information for UARE Inc. Find the WACC. Tax rate 35 percent Debt: Bonds outstanding: 6000
Please show work. Thank you in advance
Given the following information for UARE Inc. Find the WACC.
| Tax rate | 35 percent |
| Debt: | |
| Bonds outstanding: | 6000 |
| Coupon on bonds: | 4 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 |
Given the following information for UARE Inc. Find the WACC. Tax rate 35 percent Debt: Bonds outstanding: 6000 Coupon on bonds: 4 percent Par value of bonds: $1000 Bonds selling at what percent of par: 105 Bonds make coupon payments: semiannually 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 Riskfree rate 5 percent
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
