Given the following information about your firm's capital structure, calculate your firm's WACC (assume the corporate...

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Given the following information about your firm's capital structure, calculate your firm's WACC (assume the corporate tax rate is 35%). • Debt o Number of bonds outstanding = 10,000 o price per bond = $1,165 o par value per bond = $1,000 O coupon rate=6% (paid annually) o Years to maturity = 10 . Common Stock o Number of shares outstanding = 1,000,000 o Price per share = $25 o Book value per share = $15 o Beta = 1.4 o Risk free rate = 4.5% o Market risk premium = 5% Given the following information about your firm's capital structure, calculate your firm's WACC (assume the corporate tax rate is 35%). • Debt o Number of bonds outstanding = 10,000 o price per bond = $1,165 o par value per bond = $1,000 O coupon rate=6% (paid annually) o Years to maturity = 10 . Common Stock o Number of shares outstanding = 1,000,000 o Price per share = $25 o Book value per share = $15 o Beta = 1.4 o Risk free rate = 4.5% o Market risk premium = 5%

Answer rating: 100% (QA)

To calculate your firms Weighted Average Cost of Capital WACC you need to consider the cost of debt ... View the full answer