Calculate the weighted average cost of capital using the following data for a company with outstanding debt

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Calculate the weighted average cost of capital using the following data for a company with outstanding debt and common stock.

a. Market value of debt: $102 million

b. Market value of equity: $78 million

c. Bonds YTM: 5.20%

d. Risk-free rate: 6%

e. Beta: 0.85

f. Average market return: 14%

g. Corporate tax rate: 21%

Related Book For answer-question

Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Posted Date: Dec 16, 2023 04:16 AM

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Calculate the weighted average cost of capital using the following data for a company with outstanding debt

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To calculate the weighted average cost of capital WACC we need to consider the weighted average of t... View the full answer

Intermediate Financial Management

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