The current stock price for a company is 45 per share and, Ask an Expert

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The current stock price for a company is $45 per share, and there are 6 million shares outstanding. The beta for this firms stock is 1.2, the risk-free rate is 4 8, and the expected market risk premium is 6% This firm also has 130, 000 bonds outstanding, which pay interest semiannually These bonds have a coupon interest rate of 8%, 21 years to maturity, a face value of $1, 000 and an annual yield to maturity of 8%. lf the corporate tax rate is 38% what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent but do not use a percent sign).

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92425832

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