Question
When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO
When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places.
PLEASE ANSWER THESE QUESTIONS AS A PERCENTAGE. For example, if you calculate 0.1234, then enter this as 12.34% for this set of problems.
Suppose a firm has 41.60 million shares of common stock outstanding at a price of $31.21 per share. The firm also has 396000.00 bonds outstanding with a current price of $901.00. The outstanding bonds have yield to maturity 6.03%. The firm's common stock beta is 1.09 and the corporate tax rate is 37.00%. The expected market return is 10.48% and the T-bill rate is 4.14%. Compute the following:
- Weight of Equity of the firm:
- Weight of Debt of the firm:
- Cost of Equity of the firm:
- After Tax Cost of Debt of the firm:
- WACC for the Firm:
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