Long-term debt outstanding = $300,000 Yield to maturity (r D ) = 8% Number of shares of

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Long-term debt outstanding = $300,000

Yield to maturity (r_D) = 8%

Number of shares of common stocks = 10,000

Price per share = $50

Book value per share = $25

Beta of common stock = 1.5

Expected rate of return on market portfolio = 12%

Risk-free rate = 6%

Calculate and report the weighted-average cost of capital for company XYZ. Assume taxes are equal to zero. Report your answer in percentage points rounded to one decimal point.

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Intermediate Accounting Volume 2

ISBN: 9780135220498

4th Edition

Authors: Kin Lo, George Fisher

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Posted Date: Apr 18, 2024 05:03 AM

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Long-term debt outstanding = $300,000 Yield to maturity (r D ) = 8% Number of shares of

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To calculate the weightedaverage cost of capital WACC for company XYZ we need to find the cost of de... View the full answer

Intermediate Accounting Volume 2

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