Question: i just need this to study. i need a detailed explanation on how to do these questions . thank you. 3. Eastern Digital has 300,000
3. Eastern Digital has 300,000 shares outstanding which sell for $10 per share. The extra risk associated with this stock suggests that the investor should get a return 5% greater than that being paid on its bonds. The company has 10,000 10-year bonds outstanding. The bonds have a coupon rate of 8% (coupons paid semiannually), a face value of $1,000 and currently sell for $1,100. The marginal tax rate for this company is 30%, what is this company's WACC? 4. (continued from question 3) Eastern Digital is planning on expanding its operations. Its initial outlay would be $12m. The project would generate $2m per year over the next 10 years (starting at the beginning of next year). Is this project worthwhile? S 100,000 Debt 95,000 95,Do
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