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Suppose a firm has 28.20 million shares of common stock outstanding at a price of $24.90 per share. The firm also has 399000.00 bonds outstanding
Suppose a firm has 28.20 million shares of common stock outstanding at a price of $24.90 per share. The firm also has 399000.00 bonds outstanding with a current price of $938.00. The outstanding bonds have yield to maturity 6.94%. The firm's common stock beta is 0.756 and the corporate tax rate is 38.00%. The expected market return is 11.15% and the T-bill rate is 1.73%. Compute the following. Please write your final answer as a percentage (e.g. .1234 should be written as 12.34).
- 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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