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XYZ water has 1 million shares of common stock outstanding with a market price of $12 per share. The companys outstanding bonds have ten years
XYZ water has 1 million shares of common stock outstanding with a market price of $12 per share. The companys outstanding bonds have ten years to maturity a face value of $5 million, a coupon rate of 10% and sell for $985 per 1000in face value. The bond yields 8.9%. The companys risk free rate is 7% and the expected return on the market is 14%. XYZ water has a beta of 1.2 and the firm is in the 34% tax bracket. What is the
Capital structure
Cost of debt
Cost of equity
WACC
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