Assume that you have been hired as a consultant by CGT, a major
producer of chemicals and plastics, including plastic grocery bags,
styrofoam cups, and fertilizers, to estimate the firm's weighted
average cost of capital. The balance sheet and some other
information are provided below.
Assets
Current assets
$38,000,000
Net plant, property, and equipment
$101,000,000
Total assets
$139,000,000
Liabilities and Equity
Accounts payable
$10,000,000
Accruals
$9,000,000
Current liabilities
$19,000,000
Long-term debt (40,000 bonds, $1,000 par value)
$40,000,000
Total liabilities
$59,000,000...