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Suppose a firm has 26 million shares of common stock outstanding at a price of $37.6 per share. The firm also has 100,000 bonds outstanding
Suppose a firm has 26 million shares of common stock outstanding at a price of $37.6 per share. The firm also has 100,000 bonds outstanding with a current price of $1010.5. The outstanding bonds have yield to maturity 6.7%. The firm's common stock beta is 2.2 and the corporate tax rate is 36%. The expected market return is 15% and the T-bill rate is 4%. What is the WACC for this firm? Weight of Equity (3 decimals) = Weight of Debt (3 decimals) = Cost of Equity (4 decimals) = After tax Cost of Debt (4 decimals) = WACC (4 decimals) =
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