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Q) Suppose a firm has 42.50 million shares of common stock outstanding at a price of $27.96 per share. The firm also has 280000.00 bonds
Q) Suppose a firm has 42.50 million shares of common stock outstanding at a price of $27.96 per share. The firm also has 280000.00 bonds outstanding with a current price of $1,194.00. The outstanding bonds have yield to maturity 7.87%. The firm's common stock beta is 0.92 and the corporate tax rate is 36.00%. The expected market return is 10.55% and the T-bill rate is 5.91%. Compute the following: \begin{tabular}{l|l|l|} \hline -Weight of Equity of the firm & \\ \hline -Weight of Debt of the firm & \\ \hline -Cost of Equity of the firm & \\ \hline -After Tax Cost of Debt of the firm & \\ \hline -WACC for the Firm & \\ \hline \end{tabular}
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