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Verify my answers for WACC? Short & Complex Computations Computations (14 questions, 6 points each, unless otherwise noted) Consider the following capital structure for questions
Verify my answers for WACC?
Short & Complex Computations Computations (14 questions, 6 points each, unless otherwise noted) Consider the following capital structure for questions 16-22. This company has a 30% effective tax rate. The risk-free rate is 1.5%. The expected return in the equity market is 9.5%. All answers to two decimal places. Amount Outstanding Market Level Debt $150 mil Face Value Trading at a YTM of 5.10% 5% (SA) 30yr Bonds Preferred Equity 5 mil shares outstanding Trading in the market at $15 per share Annual Dividend $1.50 Common Equity 10 mil shares outstanding Trading at $10 per share No dividend Beta of 1.05 to overall equity market WACC = P D+P+E'}(1-1) + D+P+ep+D+P+E'E What is the value of D? 148.75 What is the value of ip? 5.10% What is the value of P? 75 What is the value of ip?. 10% What is the value of E? 100 What is the value of ie? 9.9 8 pts 22 10 pts What is the WACC for this companyStep by Step Solution
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