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Sudbury Mining Corporation has 3 million shares of common stocks outstanding, 7 5 0 , 0 0 0 shares of preferred shares outstanding with a
Sudbury Mining Corporation has million shares of common stocks outstanding, shares of preferred shares outstanding with a notional dividend yield of and semiannual coupon bonds outstanding with a coupon rate of and face value of $ each.
The common stock currently sells for $ per share and has a beta of the preferred share currently sells for $ per share with a face value of $ each, and the bonds have years to maturity and sells for of Yield to Maturity.
The market risk premium is Tbills are yielding and the company's tax rate is
a What is the bond price?
b What is the firm value?
c What is the WACC for this company?
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