Suppose a firm has 4900 million shares of common stock, Ask an Expert

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Suppose a firm has 49.00 million shares of common stock outstanding at a price of $13.80 per share. The firm also has 410000.00 bonds outstanding with a current price of $1,056.00. The outstanding bonds have yield to maturity 6.31%. The firm's common stock beta is 2.33 and the corporate tax rate is 38.00%. The expected market return is 9.11% and the T-bill rate is 1.74%. 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92845530

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