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 28.60 million shares of common stock outstanding at a price of $24.88 per share. The firm also has 334000.00 bonds outstanding with a current price of $1,101.00. The outstanding bonds have yield to maturity 6.69%. The firm's common stock beta is 1.07 and the corporate tax rate is 35.00%. The expected market return is 10.85% and the T-bill rate is 4.28%. 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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