Question: Moving to another question will save this response Question 3 of 11 ation 3 1 points Save Answer You have just been hired as a
Moving to another question will save this response Question 3 of 11 ation 3 1 points Save Answer You have just been hired as a financial analyst and have been assigned the task of calculating the WACC for your new company Debt 5 thousand bonds will be issued. Each bond has 15 years to maturity. a 7.5 coupon rate and is priced at 103 of par par value - 51.0001. The bond pays semiannual coupon payments. The return on the S&P index is currently 11.2 and the return on Tbilisis 4.3%. The equity beta of your company's stock is 1.24. There are 116 thousand shares of common stock outstanding and the stocks's current price is $28.54 The company's preferred stock pays a dividend of 52.15 and is currently priced at $23.87. There are 14 thousand shares of preferred stock outstanding The company's tax rate is 36% 0.1234) Given the data isted below. calculate the WACC and enter your answer as a decimal with a leading zero and four places of precision Round all intermediate costs and weights (w) to 6 decimal places Moving to another question will save this response Question of 11
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
