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Suppose a firm has 29.40 million shares of common stock outstanding at a price of $30.80 per share. The firm also has 171000.00 bonds outstanding
Suppose a firm has 29.40 million shares of common stock outstanding at a price of $30.80 per share. The firm also has 171000.00 bonds outstanding with a current price of $1,035.00. The outstanding bonds have yield to maturity 8.23%. The firm's common stock beta is 1.81 and the corporate tax rate is 36.00%. The expected market return is 9.41% and the T-bill rate is 2.79%.
Compute the following:
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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