Question
The total book value of WTCs equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5,
The total book value of WTCs equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firms bonds have a face value of $7 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 6%, and the firms tax rate is 21%. What is the companys WACC?
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The Economic Indicator Handbook How To Evaluate Economic Trends To Maximize Profits And Minimize Losses
Authors: Richard Yamarone
1st Edition
1118204662, 9781118204665
