Question: Question 5 ROM Ltd has the following capital structure components: Five million shares issued with a current market price of 9. Equity holders require a

Question 5 ROM Ltd has the following capital structure components: Five

Question 5 ROM Ltd has the following capital structure components: Five million shares issued with a current market price of 9. Equity holders require a 1496 return. $10 million face value of Corporate bonds outstanding. These bonds pay an annual coupon of 6% and currently trade at a yield to maturity of 6%. If the rm faces a corporate tax rate of 30%, compute RON Ltd's Weighted Average Cost of Capital MACE). Enter your answer in decimal' form to FOUR decimal places. For example 10.34%, would be entered as 0.1034

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