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Suppose a firm has 11.50 million shares of common stock outstanding at a price of $10.05 per share. The firm also has 376000.00 bonds outstanding
Suppose a firm has 11.50 million shares of common stock outstanding at a price of $10.05 per share. The firm also has 376000.00 bonds outstanding with a current price of $1,099.00. The outstanding bonds have yield to maturity 6.98%. The firm's common stock beta is 1.39 and the corporate tax rate is 38.00%. The expected market return is 9.59% and the T-bill rate is 2.00%. 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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