Wacc the current stock price for a company is 38 per share, Ask an Expert

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WACC The current stock price for a company is $38 per share, and there are 4 million shares outstanding. The beta for this firms stock is 1, the risk-free rate is 4.2, and the expected market risk premium is 6%. This firm also has 90,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 9%, 22 years to maturity, a face value of $1000, and a current price of 1,063.64. If the corporate tax rate is 36%, what is the weighted average cost of capital for this firm (WACC)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91826097

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