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Suppose a firm has 19.50 million shares of common stock outstanding at a price of $38.08 per share. The firm also has 431000.00 bonds
Suppose a firm has 19.50 million shares of common stock outstanding at a price of $38.08 per share. The firm also has 431000.00 bonds outstanding with a current price of $957.00. The outstanding bonds have yield to maturity 8.79%. The firm's common stock beta is 1.07 and the corporate tax rate is 38.00%. The expected market return is 11.66% and the T-bill rate is 1.50%. Compute the following: A. Weight of Equity of the firm: B. Weight of Debt of the firm: C. Cost of Equity of the firm: D. After Tax Cost of Debt of the firm: E. WACC for the Firm:
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