Question
The MBS company has 880000 shares outstanding. The shares closed at 43.29 euros yesterday. The market value of the debts of the company is estimated
The MBS company has 880000 shares outstanding. The shares closed at 43.29 euros yesterday. The market value of the debts of the company is estimated at 12230000 euros, and it could borrow again at again at 5.53% in the near future. future. The company paid a dividend of 2.74 euros last year. last year. The debt-free beta of its industry is 0,9209. Finally, we expect the financial market a return of 17.31% this year. year. The risk-free rate is 3.39% and the tax rate on profits tax rate is 1/3. 1) What is the cost of debt to use in the to use in the WACC calculation?
2)What is the financial leverage of MBS?
3) What is the beta of MBS SHARES?
4) What is the cost of equity of equity in MBS?
5) Finally, what is the WACC of MBS?
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