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will give good rating for right answer ! Adjusted WACC Ashman Motors is currently an all-equity firm. It has two million shares outstanding, selling for
will give good rating for right answer !
Adjusted WACC Ashman Motors is currently an all-equity firm. It has two million shares outstanding, selling for S49 per share. The company has a bata of 1.1, with the current risk free rate at 27% and the market premium at 9.4%. The tax rate is 40% for the company Ashman has decided to sell 549 million of bonds and retire ball its stock. The bonds will have a yeld to maturity of 76%. The beta of the company will rise to 15 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? Mint The weight of equity before Woling the bond is 100% What was Ashman's adjusted WACC before selling the bonds? % (Round to two decimal places) Step by Step Solution
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