Question: Given the same information as in the previous question: Assume a perfect capital market with no frictions. Benson Enterprises is a levered company with market

Given the same information as in the previous question: Assume a perfect capital market with no frictions. Benson Enterprises is a levered company with market value of assets of $33 million. The company's capital structure is presented in a table below. Assume a risk free interest rate of 2% and a market risk premium of 5%. The WACC of Benson Enterprises is Security Beta 0 Market Value ($ millions) 10 5 3 15 Senior Debt Junior Debt Preferred stock Common stock 0.6 0.3 1.4 Text in the Table (if you cannot see the image of the table): Senior Debt (beta = 0, market value = $10M); Junior Debt (beta = 0.6, market value = $5M); Preferred Stock (beta = 0.3, market value = $3M), Common Stock (beta = 1.4, market value = $15M). Select one: O A. 5.8% OB. 2.9% O C. 9.0% OD. 6.4%
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