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This Question: 1 pt 30 of 34 (15 complete) Fawaz Abdulaziz Alhokair Company reported the following balance sheet: 14 70 Cash Receivables Inventories Total CA
This Question: 1 pt 30 of 34 (15 complete) Fawaz Abdulaziz Alhokair Company reported the following balance sheet: 14 70 Cash Receivables Inventories Total CA Net fixed assets Total assets 280 364 126 Accounts payable 42 Other current liabilities 28 Total CL 70 Long-term debt (20 bonds) 97 Common equity (100 shares outstanding) 323 Total liab. and equity 490 490 1. The stock is currently selling for SAR 21 per share and there are 100 shares outstanding 2. Its bonds are 11-year bonds with 11% coupon rate paid annually and the face value of SAR 100. They are currenty selling at SAR 120 3. The required rate of return on its common stock is 11%. 4. Assume the firm's tax rate is 40% a. The before tax cost of debt (rd) is \% (use 2 decimals) b. The weights of debt using book value % (use 2 decimals) C. The cost of equity is % (use 2 decimals) d. The WACC using the Book value weights is % (use 2 decimals)
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