Question
The total book value of the firms equity is $12 million; book value per share is $24. The stock sells for a price of $45
| The total book value of the firms equity is $12 million; book value per share is $24. The stock sells for a price of $45 per share, and the cost of equity is 15%. The firms bonds have a face value of $6 million and sell at a price of 130% of face value. The yield to maturity on the bonds is 9%, and the firms tax rate is 30%. Find the WACC of William Tell Computers. |
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HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
