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Suppose a firm has 45.90 million shares of common stock outstanding at a price of $26.80 per share. The firm also has 347000.00 bonds outstanding
Suppose a firm has 45.90 million shares of common stock outstanding at a price of $26.80 per share. The firm also has 347000.00 bonds outstanding with a current price of $1,050.00. The outstanding bonds have yield to maturity 9.83%. The firm's common stock beta is 1.04 and the corporate tax rate is 39.00%. The expected market return is 10.88% and the T-bill rate is 4.83%. 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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