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Q) Suppose a firm has 41.30 million shares of common stock outstanding at a price of $26.49 per share. The firm also has 279000.00 bonds
Q) Suppose a firm has 41.30 million shares of common stock outstanding at a price of $26.49 per share. The firm also has 279000.00 bonds outstanding with a current price of $1,054.00. The outstanding bonds have yield to maturity 10.80%. The firm's common stock beta is 1.13 and the corporate tax rate is 40.00%. The expected market return is 9.90% and the T-bill rate is 3.95%. 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 |
Solve using excel functions.
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