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Suppose a firm has 15.70 Million shares of common stock outstanding at a price of $49.97 per share.The firm also has 250000 bonds outstanding with
Suppose a firm has 15.70 Million shares of common stock outstanding at a price of $49.97 per share.The firm also has 250000 bonds outstanding with a current price of $1,196.00. The outstanding bonds have yield to maturity 9.96%. Thr firms common stock beta is .69 and the corporate tax rate is 39.00%. The expected market return is 10.16% and the Tbill rate is 1.54%
Compute the following:
- Weight of equity of the firm
- Weight of debt of the firm
- Cost of equity of the firm
-After taxt cost of debt of the firm
- WACC for the firm
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