Suppose a firm has 18.20 million shares of common stock outstanding at a price of $29.42...
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Suppose a firm has 18.20 million shares of common stock outstanding at a price of $29.42 per share. The firm also has 430000.00 bonds outstanding with a current price of $966.00. The outstanding bonds have yield to maturity 9.93%. The firm's common stock beta is 1.39 and the corporate tax rate is 39.00%. The expected market return is 12.02% and the T-bill rate is 5.89%. Compute the following: -Weight of Equity of the firm -Weight of Debt of the firm -Cost of Equity of the firm -After Tax Cost of Debt of the firm -WACC for the Firm Suppose a firm has 18.20 million shares of common stock outstanding at a price of $29.42 per share. The firm also has 430000.00 bonds outstanding with a current price of $966.00. The outstanding bonds have yield to maturity 9.93%. The firm's common stock beta is 1.39 and the corporate tax rate is 39.00%. The expected market return is 12.02% and the T-bill rate is 5.89%. Compute the following: -Weight of Equity of the firm -Weight of Debt of the firm -Cost of Equity of the firm -After Tax Cost of Debt of the firm -WACC for the Firm
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Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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