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The Book Value balance sheet of Comstock inc, is presented below. Comstock Inc. has 10,000,000 outstanding shares of common stock with a market price of
The Book Value balance sheet of Comstock inc, is presented below. Comstock Inc. has 10,000,000 outstanding shares of common stock with a market price of $30 per share. The equity beta of Comstock common stock is 1.45. Comstock also has $100,000,000 in face value of 10% annual coupon bonds outstanding. These bonds have ten years left to maturity and a market YTM of 7%. The bond par value is $100. The Risk Free Rate is 5%, and the market portfolio offers an expected return of 14%. The firm has a tax of 35%. Calculate the weighted-average cost of capital for Comstock Inc
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