Question
You are given the following information for Hyperion Manufacturing. Assume the companys tax rate is 40 percent. Debt: $2M in Total Debt Financing with a
You are given the following information for Hyperion Manufacturing. Assume the companys tax rate is 40 percent.
Debt: $2M in Total Debt Financing with a YTM of 8%.
Common stock: 500,000 shares outstanding, selling for $3 per share; the beta is 1.5, with a 12% market risk-premium and 3.00% risk-free rate.
Preferred stock: 100,000 shares of preferred stock outstanding, currently selling for $50 per share, and an expected dividend of $5.
What is the company's WACC?
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
