Question: need help last answer was wrong .. A B n WACC Equation 2 4 3 Market value of debt $30,000,000 Market value of common equity
A B n WACC Equation 2 4 3 Market value of debt $30,000,000 Market value of common equity 30,000,000 5 Total market value $60,000,000 6 7 New project investment $25,000,000 8 9 Coupon rate of of par value bonds 6.00% 10 Price of common stock $30.00 11 Required return of common stock, 12.00% 12 Dividend yield, D /P 4.00% 13 Constant growth rate, 9 8.00% 14 Tax rate 35.00% 15 16 Amount of new investment financed with common equity 17 WACC, assuming no new common equity Formulas #N/A #N/A 12
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