Question
Problem Solving: Given the following information, what is the WACC? Commom Stock: 1 million shares outstanding, $35 per share, $1 par value, beta = 1.3;
Problem Solving: Given the following information, what is the WACC?
Commom Stock: 1 million shares outstanding, $35 per share, $1 par value, beta = 1.3; 10,000 bonds outstanding, $1,000 face value each, 8% annual coupon, 22 years to maturity, market price = $1,101.23 per bond
Market risk Premium = 8.7 %, risk-free rate = 5%, marginal tax rate = 35%
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Foundations Of Financial Management
Authors: Stanley Block
8th Canadian Edition
0070965447, 9780070965447
