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Suppose a firm has 37.60 million shares of common stock outstanding at a price of $45.16 per share. The firm also has 461000.00 bonds outstanding
Suppose a firm has 37.60 million shares of common stock outstanding at a price of $45.16 per share. The firm also has 461000.00 bonds outstanding with a current price of $994.00. The outstanding bonds have yield to maturity 10.98%. The firm's common stock beta is 1.58 and the corporate tax rate is 36.00%. The expected market return is 9.75% and the T-bill rate is 1.67%. 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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