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Q) Suppose a firm has 36.80 million shares of common stock outstanding at a price of $30.50 per share. The firm also has 224000.00 bonds
Q) Suppose a firm has 36.80 million shares of common stock outstanding at a price of $30.50 per share. The firm also has 224000.00 bonds outstanding with a current price of $1,092.00. The outstanding bonds have yield to maturity 7.62%. The firm's common stock beta is 0.73 and the corporate tax rate is 40.00%. The expected market return is 14.13% and the T-bill rate is 2.14%. 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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