Suppose a firm has 10 million shares of common stock outstanding at a price of $40...

Suppose a firm has 10 million shares of common stock outstanding at a price of $40 per share. The firm also has 300,000 bonds outstanding with a current price of $1050. The outstanding bonds have yield to maturity 7.1%. The firm's common stock beta is 1.4 and the corporate tax rate is 35%. The expected stock market return is 10% and the T-bill rate is 1.5%. What is the WACC for this firm? (Enter your answer to 4 decimal places as 0.XXXX)

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jeff jeffy answered 2 years ago

Suppose a firm has 30.20 million shares of common stock outstanding at a price of $45.42...

Suppose a firm has 30.20 million shares of common stock outstanding at a price of $45.42 per share. The firm also has 419,000.00 bonds outstanding with a current price of $1,051.00. The outstanding bonds have yield to maturity 6.52%. The firm's common stock beta is 0.986 and the corporate tax rate is 39.00%. The expected market return is 12.52% and the T-bill rate is 4.00%. Compute the following: a. Weight of equity of the firm: b. Weight of debt of...

Suppose a firm has 34 million shares of common stock outstanding at a price of $15.5...

Suppose a firm has 34 million shares of common stock outstanding at a price of $15.5 per share. The firm also has 100,000 bonds outstanding with a current price of $1171.1. The outstanding bonds have yield to maturity 7.8%. The firm's common stock beta is 2.5 and the corporate tax rate is 38%. The expected market return is 12% and the T-bill rate is 1%. What is the WACC for this firm? Weight of Equity (3 decimals): Weight of Debt...

Q1) Suppose a firm has 16.70 million shares of common stock outstanding at a price of...

Q1) Suppose a firm has 16.70 million shares of common stock outstanding at a price of $23.23 per share. The firm also has 257000.00 bonds outstanding with a current price of $1,013.00. The outstanding bonds have yield to maturity 9.76%. The firm's common stock beta is 1.227 and the corporate tax rate is 35.00%. The expected market return is 9.87% and the T-bill rate is 5.53%. Compute the following: a) Weight of Equity of the firm b) Weight...

Suppose a firm has 19.90 million shares of common stock outstanding at a price of $27.51...

Suppose a firm has 19.90 million shares of common stock outstanding at a price of $27.51 per share. The firm also has 198000.00 bonds outstanding with a current price of $1,015.00. The outstanding bonds have a yield to maturity of 9.02%. The firm's common stock beta is 1.41 and the corporate tax rate is 39.00%. The expected market return is 14.57% and the T-bill rate is 2.93%. Compute the following: -Weight of Equity of the firm -Weight of Debt of the...

Q) Suppose a firm has 40.80 million shares of common stock outstanding at a price of...

Q) Suppose a firm has 40.80 million shares of common stock outstanding at a price of $45.56 per share. The firm also has 151000.00 bonds outstanding with a current price of $1,106.00. The outstanding bonds have yield to maturity 7.18%. The firm's common stock beta is 2.267 and the corporate tax rate is 36.00%. The expected market return is 12.79% and the T-bill rate is 3.05%. Compute the following: a) Weight of Equity of the firm b) Weight of Debt...

Suppose a firm has 29.90 million shares of common stock outstanding at a price of $11.61...

Suppose a firm has 29.90 million shares of common stock outstanding at a price of $11.61 per share. The firm also has 103000.00 bonds outstanding with a current price of $1,087.00. The outstanding bonds have yield to maturity 8.75%. The firm's common stock beta is 1.504 and the corporate tax rate is 38.00%. The expected market return is 13.80% and the T-bill rate is 5.97%. Compute the following: a) Weight of Equity of the firm b) Weight of...

Q) Suppose a firm has 16.70 million shares of common stock outstanding at a price of...

Q) Suppose a firm has 16.70 million shares of common stock outstanding at a price of $16.68 per share. The firm also has 167000.00 bonds outstanding with a current price of $1,016.00. The outstanding bonds have yield to maturity 7.19%. The firm's common stock beta is 1.97 and the corporate tax rate is 38.00%. The expected market return is 11.54% and the T-bill rate is 2.96%. Compute the following: -Weight of Equity of the firm -Weight of Debt...

ABC Inc. has 10 million shares of common stock outstanding. The firm also has 1,200,000 shares...

ABC Inc. has 10 million shares of common stock outstanding. The firm also has 1,200,000 shares of 6 percent preferred stock (annual dividend=$6) and 300,000 semi-annual bonds of $1,000 face value with a coupon rate of 8 percent semiannual bonds outstanding. The bonds were issued five years ago with maturity of 30 years when they were issued. The market price of common stock is $46 per share and has a beta of 0.85, the preferred stock currently sells for $90...

Suppose a firm has 16.4 million shares of common stock outstanding and eight candidates are up...

Suppose a firm has 16.4 million shares of common stock outstanding and eight candidates are up for election to four seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election of one member to the board? Minimum number of votes: b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election...

Suppose a firm has 15.7 million shares of common stock outstanding and eight candidates are up...

Suppose a firm has 15.7 million shares of common stock outstanding and eight candidates are up for election to four seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election of one member to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election of one member to...

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