Cougar Corp has market value of $33 million of equity and a market value of...

50.1K

Verified Solution

Question

Finance

image
Cougar Corp has market value of $33 million of equity and a market value of $10 million of debt. Cougar Corp has a tax rate of 20%. If Cougar Corp has a cost of equity of 11% and a cost of debt of 5.3%, what is the WACC for Cougar Corp? (Answer in percent: For 0.05324 answer, 5.324) QUESTION 11 Texas Instruments has $21 million of outstanding equity and S13 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 2. If the market risk premium is 6,4% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm's tax rate is 30% (Answer in percent For 0.05324 answer, 5.324)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students