McCann Catching, Inc. has 3.00 million shares of stock outstanding. The stock currently sells for $12.89...

Transcribed Image Text:

McCann Catching, Inc. has 3.00 million shares of stock outstanding. The stock currently sells for $12.89 per share. The firm's debt is publicly traded and was recently quoted at 89.00% of face value. It has a total face value of $20.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.12. The corporate tax rate is 38.00%. The firm is considering a $44.42 million expansion of their production facility. The project has the same risk as the firm overall and will earn $10.00 million per year for 6.00 years. What is the WACC for McCann Catching, Inc.? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Show Hint McCann Catching, Inc. has 2.00 million shares of stock outstanding. The stock currently sells for $12.67 per share. The firm's debt is publicly traded and was recently quoted at 89.00% of face value. It has a total face value of $12.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.16. The corporate tax rate is 39.00%. The firm is considering a $46.09 million expansion of their production facility. The project has the same risk as the firm overall and will earn $10.00 million per year for 6.00 years. What is the NPV of the expansion? (answer in terms of millions, so 1,000,000 would be 1.0000) Submit Answer format: Currency: Round to: 4 decimal places. McCann Catching, Inc. has 3.00 million shares of stock outstanding. The stock currently sells for $12.89 per share. The firm's debt is publicly traded and was recently quoted at 89.00% of face value. It has a total face value of $20.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.12. The corporate tax rate is 38.00%. The firm is considering a $44.42 million expansion of their production facility. The project has the same risk as the firm overall and will earn $10.00 million per year for 6.00 years. What is the WACC for McCann Catching, Inc.? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Show Hint McCann Catching, Inc. has 2.00 million shares of stock outstanding. The stock currently sells for $12.67 per share. The firm's debt is publicly traded and was recently quoted at 89.00% of face value. It has a total face value of $12.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.16. The corporate tax rate is 39.00%. The firm is considering a $46.09 million expansion of their production facility. The project has the same risk as the firm overall and will earn $10.00 million per year for 6.00 years. What is the NPV of the expansion? (answer in terms of millions, so 1,000,000 would be 1.0000) Submit Answer format: Currency: Round to: 4 decimal places.