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Suppose a firm has 4 8 . 9 0 million shares of common stock outstanding at a price of $ 2 8 . 6 0
Suppose a firm has million shares of common stock outstanding at a price of $ per
share. The firm also has bonds outstanding with a current price of $ The
outstanding bonds have yield to maturity The firm's common stock beta is and the
corporate tax rate is The expected market return is and the Tbill rate is
Compute the following:
A Weight of Equity of the firm:
B Weight of Debt of the firm:
C Cost of Equity of the firm:
D After Tax Cost of Debt of the firm:
E WACC for the Firm:
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