Question
What is the weighted-average cost of capital of Super Excellent Company Ltd. Given the following information? Equity shares outstanding 15,500,000 Stock price per share 22
What is the weighted-average cost of capital of Super Excellent Company Ltd. Given the following information?
Equity shares outstanding 15,500,000
Stock price per share 22 THB
Yield to maturity on the company’s bond 7.5%
The coupon rate on the company’s bond 5.5%
Book value of interest-bearing debt 160,000,000 THB
The interest rate on government bonds 4.5%
XYZ’s equity beta 1.5
Historical excess return on stocks 6.5%
Tax rate 35%
Step by Step Solution
3.32 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
WeightedAverage Cost of Capital WACC of Super Excellent Company Ltd Following formula is used to c...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started