Question
TAFKAP Industries has 3 million shares of stock outstanding selling at $15 per share, and an issue of $20 million in 8.5 percent annual coupon
TAFKAP Industries has 3 million shares of stock outstanding selling at $15 per share, and an issue of $20 million in 8.5 percent annual coupon bonds with a maturity of 20 years, selling at 104 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 15.0 percent. What is TAFKAPs WACC?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
3rd Edition
0765636891, 9780765636898
