Suppose a firm has 28.50 million shares of common stock outstanding at a price of...
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Finance
Suppose a firm has 28.50 million shares of common stock outstanding at a price of $14.16 per share. The firm also has 463000.00 bonds outstanding with a current price of $1,180.00. The outstanding bonds have yield to maturity 8.38%. The firm's common stock beta is 0.98 and the corporate tax rate is 35.00%. The expected market return is 14.39% and the T-bill rate is 1.54%. Compute the following:
- Weight of Equity of the firm:
- Weight of Debt of the firm:
- Cost of Equity of the firm:
- After Tax Cost of Debt of the firm:
- WACC for the Firm:
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