Question: Cafe Corp. has 5 5 0 , 0 0 0 shares outstanding and 7 , 0 0 0 coupon bonds. The shares are currently priced
Cafe Corp. has shares outstanding and coupon bonds. The shares are currently priced at $ each and have a beta of The firm's bonds have a coupon rate of paid semiannually and years to maturity. The YTM on the bonds is currently
The expected return on the S&P TX Composite Index is and the riskfree rate is basis points. Assume Cafe Corp.s marginal tax rate is The firm's WACC is percent.
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