Calculate the WACC for Aya Ltd, using the following: Debt : 5,000 outstanding, 6% semi-annual coupon bonds,
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Question:
Calculate the WACC for Aya Ltd, using the following:
Debt: | 5,000 outstanding, 6% semi-annual coupon bonds, with 25 years to maturity and selling for 105; |
Common Stock: | 175,000 shares outstanding, selling for $58.00 per share, with a beta of 1.10 |
Market: | equity risk premium of 7% and 5% risk free rate. |
Tax Rate: | 35% |
Question 30 options:
a) | 9.62% |
b) | 5.63% |
c) | 10.39% |
d) | None of these answers. |
e) | 9.63% |
Related Book For
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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