Question: please answer the question below with excel or the forumlas below with an finance calculator thank you Suppose a firm has 20.50 million shares of

please answer the question below with excel or the forumlas below with an finance calculator thank you
please answer the question below with excel or the forumlas below with
an finance calculator thank you Suppose a firm has 20.50 million shares

Suppose a firm has 20.50 million shares of common stock outstanding at a price of $16.41 per share. The firm also has 175000.00 bonds outstanding with a current price of $1,161.00. The outstanding bonds have yield to maturity 6.17%. The firm's common stock beta is 1.62 and the corporate tax rate is 36.00%. The expected market return is 13.86% and the T-bill rate is 5.95%. Compute the following: A. Weight of Equity of the firm: B. Weight of Debt of the firm: C. Cost of Equity of the firm: D. After Tax Cost of Debt of the firm: E. WACC for the Firm: If you want to use formulas, listed below are some formulas commonly used in WACC Calculations: The CAPM (Captal Asset pricing Model) estimates the required rate of retum (cost of equity) as: where: Ris ise required rate of return. R is the corresponding risk-free rate, b is the beta-coefficient for the stock. MRP is the Market risk premium. and Rie is the Expected rate of return on the market portolio. Re=Rf+(MRP)=Rf+(RmRf) For the cost of Debt, you should calculate the YTM of a bond, which is nothing but an annity with a future lump sum payment See previous quirzes for a discussion. The WACC is calculased as: where: We is the weight of equity, W, is the weight of debt, Re is the cost of equity. R4 is the cost of debt, and T is the tax rate WACC=WeRe+WdRd(1T)

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