Parole co has 78449 bonds outstanding that are selling at, Ask an Expert

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Parole Co. has 78,449 bonds outstanding that are selling at par value. The bonds yield 8.9 percent. The company also has 5.2 million shares of common stock outstanding. The stock has a beta of 1.26 and sells for $40.6 a share. The U.S. Treasury bill is yielding 4.3 percent and the market risk premium is 8.6 percent. Parole's tax rate is 36 percent. What is the firm's weighted average cost of capital?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93040671

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