Calculate the cost of debt. Calculate the cost of equity. Calculate the weight of debt and equity.
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Question:
- Calculate the cost of debt.
- Calculate the cost of equity.
- Calculate the weight of debt and equity.
- Calculate the WACC.
Table 4
Stock Info | Amount | Bond Info | Amount |
Shares Outstanding | 100 | Face value | $1,000 |
Stock Price | $15 | Coupon | 7% |
beta | 1.45 | YTM | 8% |
risk free rate | 3% | N | 10 |
Market Risk Premium | 9% | Payments | Semi-Annual |
Book Value | $900 | Tax | 0.26 |
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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