Question
Suppose a firm has 13.10 million shares of common stock outstanding at a price of $24.71 per share.The firm also has 464000.00 bonds outstanding with
Suppose a firm has 13.10 million shares of common stock outstanding at a price of $24.71 per share.The firm also has 464000.00 bonds outstanding with a current price of $1,194.00. The outstanding bonds have yield to maturity 7.12%. The firm's common stock beta is 2.12 and the corporate tax rate is 40.00%. The expected market return is 11.94% and the T-bill rate is 3.32%. 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
Q) Suppose a firm has 40.00 million shares of common stock outstanding at a price of $41.36 per share.The firm also has 291000.00 bonds outstanding with a current price of $1,078.00. The outstanding bonds have yield to maturity 7.82%. The firm's common stock beta is 1.58 and the corporate tax rate is 35.00%. The expected market return is 12.85% and the T-bill rate is 1.19%. 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
Q) Suppose a firm has 42.90 million shares of common stock outstanding at a price of $24.89 per share.The firm also has 297000.00 bonds outstanding with a current price of $1,183.00. The outstanding bonds have yield to maturity 9.60%. The firm's common stock beta is 2.00 and the corporate tax rate is 38.00%. The expected market return is 13.01% and the T-bill rate is 2.45%. 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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