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Q) Suppose a firm has 30.60 million shares of common stock outstanding at a price of $39.62 per share. The firm also has 252000.00 bonds
Q) Suppose a firm has 30.60 million shares of common stock outstanding at a price of $39.62 per share. The firm also has 252000.00 bonds outstanding with a current price of $1,180.00. The outstanding bonds have yield to maturity 10.48%. The firm's common stock beta is 1.30 and the corporate tax rate is 38.00%. The expected market return is 14.03% and the T-bill rate is 1.49% 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 INSTRUCTIONS When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places
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