1. If Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding....
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1. If Qual Corp. currently trades at $30/ per share, with 5 million shares outstanding. Their total debt is 5 million with 10- year maturity, semi-annual bond pricing at $780 now. The coupon rate is 7%. This company has a Beta of 13, risk free rate is 3% and SP 500 index return is 10% now. With a tax rate 40%, please calculate the WACC. 1(a) How much is cost of debt? (In decimal format) 1(b) how much is cost of equity?(same format) 1(c) What is WACC? (same format)
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