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Q) Suppose a firm has 40.30 million shares of common stock outstanding at a price of $31.51 per share. The firm also has 393000.00 bonds
Q) Suppose a firm has 40.30 million shares of common stock outstanding at a price of $31.51 per share. The firm also has 393000.00 bonds outstanding with a current price of $1,060.00. The outstanding bonds have yield to maturity 7.78%. The firm's common stock beta is 0.60 and the corporate tax rate is 40.00%. The expected market return is 12.88% and the T-bill rate is 5.60%. 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 |
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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