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Q) Suppose a firm has 20.90 million shares of common stock outstanding at a price of $48.74 per share.The firm also has 336000.00 bonds outstanding
Q) Suppose a firm has 20.90 million shares of common stock outstanding at a price of $48.74 per share.The firm also has 336000.00 bonds outstanding with a current price of $1,011.00. The outstanding bonds have yield to maturity 10.16%. The firm's common stock beta is 1.84 and the corporate tax rate is 36.00%. The expected market return is 11.70% and the T-bill rate is 4.42%. Compute the following:
-Weight of Equity of the firm
-Weight of Debt of the firm
-Cost of Equity of the firm
-After Tax Cost of Debt of the firm
-WACC for the Firm
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