Question
WSB Inc. common stock currently has a market capitalization of $364 million. It has a beta of 1.9, T bills currently yield 3% per year
WSB Inc. common stock currently has a market capitalization of $364 million. It has a beta of 1.9, T bills currently yield 3% per year while the expected risk premium on the SP500 is 7% annually.
On the debt side, WSB has bonds with $212 million of face value that are currently trading at 101% of par with a YTM of 8.6%.
If WSB faces a tax rate of 32%, what is its WACC?
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Weathering The Storm A Quick Guide To Safeguarding Your Finances During Economic Recession
Authors: Liam Wilhelm
1st Edition
979-8864393628
