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Suppose a firm has 28.50 million shares of common stock outstanding at a price of $34.46per share. The firm also has 215000.00 bonds outstanding with
Suppose a firm has 28.50 million shares of common stock outstanding at a price of $34.46per share. The firm also has 215000.00 bonds outstanding with a current price of $1,063.00. The outstanding bonds have yield to maturity 10.73%. The firm's common stock beta is 1.386 and the corporate tax rate is 35.00%. The expected market return is 11.43% and the T-bill rate is 4.07%. Compute the following. Please write your final answer as a percentage (e.g. .1234 should be written as 12.34). 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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