Question
Please Show Your Work Use the following information to answer questions: A MNE has a capital structure with the following features: $150,000,000 in 30-year domestic
Please Show Your Work
Use the following information to answer questions:
A MNE has a capital structure with the following features:
$150,000,000 in 30-year domestic bonds yielding 7.5% annually with $6 million in floatation costs.
$100,000,000 in 10-year foreign bonds yielding 8.0% annually with $8 million in floatation costs.
$300,000,000 in common stock trading on the home market with a beta of 1.4.
$200,000,000 in common stock trading on a foreign exchange with a beta of 1.8.
What is the companys weighted average cost of capital (WACC)?
A) 11.61%
B) 10.82 %
C) 12.37%
D) There is not enough information to answer the question.
E) none of the above
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