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Titan Mining Corporation has $588,000,000 market value of common stock and $220,000,000 market value of bonds. It pays 10% annual coupon.

Bond par value is $1,000, current price is $910.00; and has 17 years to maturity. Stock beta is 1.15, the market risk is 19 percent, risk free rate is 7.5 percent, and the firm's tax rate is 32 percent.

a, What is the firm's cost of deb (before tax)?

b. What is the firm's cost of equity?

c. What is the firm's WACC?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92868082

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