Given the following information for Groto Corp. find the WACC. Assume the company's tax rate is 30%.
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Given the following information for Groto Corp. find the WACC. Assume the company's tax rate is 30%. Bonds: 10,000 9% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 98% of par; the bonds make semi-annual payments. Common shares: 300,000 shares outstanding, selling for $40 per share; cost of equity is 12.5%. Preferred shares: 55,000 shares of 6% preferred stock outstanding, currently selling for $100 per share.
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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