Question
TAFKAP Industries has 4 million shares of stock outstanding selling at $15 per share, and an issue of $24 million in 8.5 percent annual coupon
| TAFKAP Industries has 4 million shares of stock outstanding selling at $15 per share, and an issue of $24 million in 8.5 percent annual coupon bonds with a maturity of 10 years, selling at 104 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 14.5 percent. |
| What is TAFKAPs WACC? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| WACC | % |
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
