Moorefield Company has 11 million shares of stock outstanding and 90,000 number of 7.10% annual coupon bonds
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Moorefield Company has 11 million shares of stock outstanding and 90,000 number of 7.10% annual coupon bonds outstanding, par value is $800 each. The stock currently sells for $32 per share and has a beta of 2.13, and the bonds have 8 years to maturity and sell for 100% of par, their yield to maturity is 7.10%. The expected return on the market portfolio is 12%, T-bills are yielding 5%, and the firm's tax rate is 30%. What is the company's cost of equity and WACC?
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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