Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is
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Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is 5 million with 10- year maturity, semi-annual bond pricing at $780 now. The coupon rate is 7%. This company has a Beta of 1.3, risk free rate is 3% and SP 500 index return is 10% now. With a tax rate 40%, please calculate the WACC.
(a) how much is cost of debt? (In decimal format)
(b) how much is cost of equity?(same format)
(c) what is WACC? (Same format)
Related Book For
Finance for Executives Managing for Value Creation
ISBN: 978-0538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet
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