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- Problem 4. Compute the WACC given the following information for Oracle Systems, Inc. using market value weights and returns based on the following data:
- Problem 4. Compute the WACC given the following information for Oracle Systems, Inc. using market value weights and returns based on the following data: Shares outstanding = 247 million Price of common stock = $37.91 Book value of debt = $1.15 billion Book value of equity = $2.855 billion Market price of bonds = 106.25% Bonds mature in Dec. 2034 Coupon rate on outstanding bonds = 5.25% Tax rate = 24% Bond Yield to Maturity (YTM) = 4.84% Required return on Oracle common stock = 9.15% = =
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