Question
Suppose a firm has 34.10 million shares of common stock outstanding at a price of $46.49 per share. The firm also has 371000.00 bonds outstanding
Suppose a firm has 34.10 million shares of common stock outstanding at a price of $46.49 per share. The firm also has 371000.00 bonds outstanding with a current price of $1,072.00. The outstanding bonds have yield to maturity 8.21%. The firm's common stock beta is 2.296 and the corporate tax rate is 36.00%. The expected market return is 10.62% and the T-bill rate is 1.86%. 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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