Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is 5 million with 10- year maturity, semi-annual bond pricing at $780 now. The coupon rate is 7%. This company has a Beta of 1.3, risk free rate is 3% and SP 500 index return is 10% now. With a tax rate 40%, please calculate the WACC.

(a) how much is cost of debt? (In decimal format)

(b) how much is cost of equity?(same format)

(c) what is WACC? (Same format)

Answer rating: 100% (QA)

a Cost of DebtKd RATE2070780100095 with a period of 20 coupon of 70 PV at ... View the full answer