The total book value of WTC s equity is $ 1 3 million, and book value per

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Question:

The total book value of WTC

s equity is $

13

million, and book value per share is $

26 .

The stock has a market

-

-

book ratio of

1.5,

and the cost of equity is

15 % .

The firm

s bonds have a face value of $

9

million and sell at a price of

110 %

of face value. The yield to maturity on the bonds is

10 %,

and the firm

s tax rate is

21 % .

What is the company

s WACC?

Posted Date: May 19, 2024 02:04 AM

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