Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mobile inc. has 2 million shares of stock outstand

Mobile Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50...

60.1K

Verified Solution

Question

Finance

Mobile Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firms debt is publicly traded and was recently quoted at 90% of face value matures in 10 years. It has a total face value of $10 million, and it has a coupon rate of 8%. The risk-free rate is 2% and the market risk premium is 8%. Youve estimated that the firm has a beta of 1.20. The corporate tax rate is 40%.

Answer the following question

A . What is the percentage of equity used by Mobille Inc? AND. What is the WACC from Mobile Inc.?

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

Mechanical Engineering
1.2K views

Problem 2: Plot the LST (y?axis) corresponding to 10:00 AM versus months (x?axis) (consider the 21st...

General Management
1.2K views

what new services were created because of covid 19? how the covid 19 were a good...

Biology
1.2K views

Below is a primary spermatocyte in metaphase I of meiosis The chromosomes have already replicated...

Physics
1.2K views

Two uniform sphere each of mass M and radius R separated by a disctance 10R...

Physics
1.2K views

Five capacitors are connected as show n in the figure Initially all capacitors ar e...

Physics
1.2K views

The value of can be B me obtained by using a specially designed vacuum tube...

Geometry
1.2K views

Question 8 Find the measure of ON in the parallelogram LMNO 24 cm L O...

Calculus
1.2K views

Solve for x 2 sin x 2 cos x 0 2 X

Algebra
1.2K views

Write the compound statement in symbolic form Let letters assigned to the simple statements represent...

Accounting
1.2K views

n which of the following types of firms would it be appropriate to prepare contribution...

Accounting
1.2K views

Seth and Beth have original investments of $50,000 and $100,000 respectively in a partnership. The...

Accounting
1.2K views

The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs...