Question
The total book value of the firms equity is $16 million; book value per share is $32. The stock sells for a price of $35
The total book value of the firms equity is $16 million; book value per share is $32. The stock sells for a price of $35 per share, and the cost of equity is 13%. The firms bonds have a face value of $4 million and sell at a price of 140% of face value. The yield to maturity on the bonds is 7%, and the firms tax rate is 40%. Find the WACC of William Tell Computers.
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
