Caldwell Inc stock has a current market price of $28 and 72 million shares outstanding. The...
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Caldwell Inc stock has a current market price of $28 and 72 million shares outstanding. The stock's expected rate of return according to the CAPM is 12.0%. Caldwell bonds have a current market price of 105.5% of par, yield-to-maturity of 8.7%, and a total par value of $750 million. The firm's tax rate is 19%. If there are no other classes of securities, what is the firm's WACC? Enter your answer as a decimal and show four decimal places. For example, if your answer is 9.25%, enter .0925. Caldwell Inc stock has a current market price of $28 and 72 million shares outstanding. The stock's expected rate of return according to the CAPM is 12.0%. Caldwell bonds have a current market price of 105.5% of par, yield-to-maturity of 8.7%, and a total par value of $750 million. The firm's tax rate is 19%. If there are no other classes of securities, what is the firm's WACC? Enter your answer as a decimal and show four decimal places. For example, if your answer is 9.25%, enter .0925.
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Given Market Price per Share 28 Number of Shares Outstanding 72000000 Expected Rate of Return Cost o... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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