Given the following information, what is the value of XYZ Corporation and its WACC?

Common Stock: 14. 2 million shares outstanding, price = $35 per share
Bond Issue 1: $500 million total face value, price = 102% of face value
Bond Issue 2: $175 million total face value, price = $850 per bond

-Beta = 1.15
-Market risk premium = 9%
-Risk-free rate = 5%
-Coupon rate = 9%, semiannual coupons
-15 years to maturity
•Tax rate = 40%

Answer rating: 100% (QA)

Calculate the value of Common Stock Value of Common Stock Number of Shares Outstanding Price per Share Value of Common Stock 142 million shares 35 per ... View the full answer