Question
The total book value of WTCs equity is $10 million, and book value per share is $16. 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 $16. The stock has a market-to-book ratio of 1.5, and the cost of equity is 13%. The firms bonds have a face value of $6 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 9%, and the firms tax rate is 21%.
What is the companys WACC?
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Law And Financial Stability
Authors: International Monetary Fund
1st Edition
1513523007, 978-1513523002
