will give good rating!

Adjusted WACC Ashman Mators is currently an all-equity firm. It has two million shares outstanding, selling for $50 per share. The company has a beta of 12, with the current risk free rate at 26% and the market promium at 88% The tax rate is 30% for the company, Ashman has decided to sell 550 million of bonds and retire half its stock The bonds will have a yield to maturity of 92% The beta of the company will rise to 17 with the new debt. What was Ashman's adjusted WACC before selling the bonds? What is its new WACC after selling the bonds and retiring the stock with the proceeds from the sale of the bonds? Hint The weight of equity before selling the bond is 100% What was Ashman's adjusted WACC before selling the bonds? 1% (Round to two decimal places)