Find the WACC of William Tell Computers. The total book value of the firm's equity is $10 million; book value per share is $20. The stock sells for a price of $30 per share, and the cost of equity is 15%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 9%, and the firm's tax rate is 40%.

Transcribed Image Text:

Book value firm's equity Book value per share Stock sells for a price of 10.00 million S 20.00 S 30.00 15% 5.00 million Bonds total face value Selling price of bond Yield to maturity of bonds Firm's tax rate Bonds face value 110%| 9% 40% S 1,000.00