Question
TAFKAP Industries has 5 million shares of stock outstanding selling at $13 per share, and an issue of $30 million in 8.5 percent annual coupon
TAFKAP Industries has 5 million shares of stock outstanding selling at $13 per share, and an issue of $30 million in 8.5 percent annual coupon bonds with a maturity of 10 years, selling at 107 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 12.5 percent.
| What is TAFKAPs WACC? (Do not round intermediate calculations and round your finalanswer to 2 decimal places.) |
| WACC | % |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
