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Question 17) Good Finance LLC has 200,000 shares of common stock outstanding at...

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Accounting

Question 17) Good Finance LLC has 200,000 shares of common stock outstanding at a market price of $40 a share. The company has $4,000,000 of face value of bonds outstanding selling at 95 percent of face value. The firm has no Preferred Shares outstanding. The market risk premium is 8.5 percent, the risk-free interest rate is 3.0 percent, and the tax rate is 24 percent. The beta of the firm's common share is equal to 1.75. The BEFORE TAX Cost of debt of the firm is equal to 10 percent. Find the Capital Structure Weight (1), the firm's Cost of Equity using CAPM (2), and the firm's WACC (3).
(5 Points)
Common Shares Outstanding 200,000
Price per Common Share $ 40.00
Bonds Outstanding $ 4,000,000.00
Price bond Now (% Face Value) 95
Find the Capital Structure Weight (1)
Market Value Common Equity (E)
Market Value of Common Debt (D)
Market Value Assets (V)

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