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Suppose a firm has 37.80 million shares of common stock outstanding at a price of $10.25 per share.The firm also has 141,000.00 bonds outstanding with
Suppose a firm has 37.80 million shares of common stock outstanding at a price of $10.25 per share.The firm also has 141,000.00 bonds outstanding with a current price of $1,168.00. The outstanding bonds have yield to maturity 6.05%. The firm's common stock beta is 1.15 and the corporate tax rate is 39.00%. The expected market return is 10.26% and the T-bill rate is 5.63%.
How do you find 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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