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Suppose a firm has 37.40 million shares of common stock outstanding at a price of $14.11 per share. The firm also has 479000.00 bonds outstanding
Suppose a firm has 37.40 million shares of common stock outstanding at a price of $14.11 per share. The firm also has 479000.00 bonds outstanding with a current price of $1,186.00. The outstanding bonds have yield to maturity 7.99%. The firm's common stock beta is 1.14 and the corporate tax rate is 39.00%. The expected market return is 12.55% and the T-bill rate is 3.47%. Compute the following: |
a. Weight of Equity of the firm:
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b. Weight of Debt of the firm:
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c. Cost of Equity of the firm:
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d. After Tax Cost of Debt of the firm:
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e. WACC for the Firm: |
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