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Suppose a firm has 35.90 million shares of common stock outstanding at a price of $23.17 per share. The firm also has 136000.00 bonds outstanding
Suppose a firm has 35.90 million shares of common stock outstanding at a price of $23.17 per share. The firm also has 136000.00 bonds outstanding with a current price of $1,034.00. The outstanding bonds have yield to maturity 9.97%. The firm's common stock beta is 1.94 and the corporate tax rate is 40.00%. The expected market return is 14.67% and the T-bill rate is 4.78%. 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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