Your firm's required return on equity is 21%, and your market capitalization is $121 million. You...
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Your firm's required return on equity is 21%, and your market capitalization is $121 million. You have zero-coupon. debt outstanding with face value $30 million and 7 years to maturity. The debt is trading for $18 million at present, and the market believes there is a 87% chance the debt will be paid in full and a 13% chance the debt holders will receive half of the face value at maturity. There are no taxes. What is your firm's WACC? Provide a percentage to two digits after the decimal. Your WACC is%. Your firm's required return on equity is 21%, and your market capitalization is $121 million. You have zero-coupon. debt outstanding with face value $30 million and 7 years to maturity. The debt is trading for $18 million at present, and the market believes there is a 87% chance the debt will be paid in full and a 13% chance the debt holders will receive half of the face value at maturity. There are no taxes. What is your firm's WACC? Provide a percentage to two digits after the decimal. Your WACC is%.
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Answer rating: 100% (QA)
Given Required return on equity cost of equity 21 Market capitalization 121 million Face value of de... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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