Question: Must show excel calculations in a separate table. If you cannot show the calculations, please do not answer. Thank you! You are given the following
Must show excel calculations in a separate table. If you cannot show the calculations, please do not answer. Thank you!
You are given the following information for company XYZ:
Long-term debt outstanding = $300,000
Yield to maturity (rD) = 8 percent
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 percent
Risk-free rate = 6 percent
Calculate the weighted-average cost of capital for company XYZ. Assume taxes are equal to zero.
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