YS Corp. has a WACC of 8.015%. The cost of equity is 11.40%, and the company's...

 

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YS Corp. has a WACC of 8.015%. The cost of equity is 11.40%, and the company's semi-annual coupon bonds have a yield-to-maturity of 6.50% (APR, semi-annually compounded). The risk-free rate is 3.0%, the expected return on the market portfolio is 10.0%, and the tax rate is 30%. What is YS Corp.'s debt-to-equity (D/E) ratio? YS Corp. has a WACC of 8.015%. The cost of equity is 11.40%, and the company's semi-annual coupon bonds have a yield-to-maturity of 6.50% (APR, semi-annually compounded). The risk-free rate is 3.0%, the expected return on the market portfolio is 10.0%, and the tax rate is 30%. What is YS Corp.'s debt-to-equity (D/E) ratio?

Answer rating: 100% (QA)

To calculate YS Corps debttoequity DE ratio we need to first determine the proportion of debt and eq... View the full answer