Question: Use the following data for securities issued by LuccasenCorp. Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 8.5% coupons
Use the following data for securities issued by LuccasenCorp. Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 8.5% coupons with annual payments, 15 years to maturity, and currently sell for $940. The marginal ta: rate is 4%. Equity: The company has 9,000,000 shares of (common) stock outstanding, selling for $68 per share. The company's beta is 1.25 , the risk free rate is 1%, and the market risk premium is 8%. What is the total market value of this firm? What percent of the company's financing is debt? What percent of the company's financing is equity? What is the after-tax cost of debt? What is the cost of equity? What is the company's weighted average cost of capital
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