The UpTowner has a beta of 1.18, a debt-to-equity ratio of 0.36, and a cost of equity
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The UpTowner has a beta of 1.18, a debt-to-equity ratio of 0.36, and a cost of equity of 11.74 percent. The market rate of return is 10.4 percent, and the tax rate is 35 percent. If the pretax cost of debt is 6.9 percent, what is the company's WACC?
Golden Eagle has 1,250 bonds outstanding with a market value of $980 each. The pretax cost of debt is 7.2 percent. The firm also has 46,000 shares of common stock outstanding at a price per share of $32 and a beta of 1.21. The risk-free rate is 2.4 percent, the market risk premium is 7.3 percent, and the tax rate is 34 percent. What is the company's WACC?
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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