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Q) Suppose a firm has 42.50 million shares of common stock outstanding at a price of $34.06 per share. The firm also has 102000.00 bonds
Q) Suppose a firm has 42.50 million shares of common stock outstanding at a price of $34.06 per share. The firm also has 102000.00 bonds outstanding with a current price of $997.00. The outstanding bonds have yield to maturity 6.59%. The firm's common stock beta is 2.41 and the corporate tax rate is 40.00%. The expected market return is 14.80% and the T-bill rate is 4.02%. 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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