The current stock price for a company is $33 per share, and there are 7 million...

The current stock price for a company is $33 per share, and there are 7 million shares outstanding. The beta for this firms stock is 0.9, the risk-free rate is 4.8, and the expected market risk premium is 6.2%. This firm also has 50,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 7%, 19 years to maturity, a face value of $1,000, and an annual yield to maturity of 7.8%. If the corporate tax rate is 34%, 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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jeff jeffy answered 1 year ago

The current stock price for a company is $43 per share, and there are 7 million...

The current stock price for a company is $43 per share, and there are 7 million shares outstanding. The beta for this firms stock is 1.1, the risk-free rate is 4.8, and the expected market risk premium is 6.5%. This firm also has 290,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 9%, 18 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.3%. If the corporate tax...

The current stock price for a company is $39 per share, and there are 7 million...

The current stock price for a company is $39 per share, and there are 7 million shares outstanding. The beta for this firms stock is 0.9, the risk-free rate is 4.3, and the expected market risk premium is 5.7%. This firm also has 100,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 5%, 15 years to maturity, a face value of $1,000, and a current price of 1,010.44. If the corporate tax rate is...

The current stock price for a company is $42 per share, and there are 6 million...

The current stock price for a company is $42 per share, and there are 6 million shares outstanding. This firm also has 230,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 9%, 10 years to maturity, a face value of $1,000, and an annual yield to maturity of 7.8%, what is the percent market value of debt for this firm? (Answer to the nearest hundredth of a percent, but do not use a...

The current stock price for a company is $48 per share, and there are 5 million...

The current stock price for a company is $48 per share, and there are 5 million shares outstanding. The beta for this firms stock is 1.2, the risk-free rate is 4.2, and the expected market risk premium is 6.4%. This firm also has 120,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 6%, 10 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.1%. If the corporate tax...

The current stock price for a company is $47 per share, and there are 8 million...

The current stock price for a company is $47 per share, and there are 8 million shares outstanding. The beta for this firms stock is 1, the risk-free rate is 4.5, and the expected market risk premium is 5.9%. This firm also has 250,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 9%, 23 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.2%. If the corporate tax...

The current stock price for a company is $37 per share, and there are 4 million...

The current stock price for a company is $37 per share, and there are 4 million shares outstanding. This firm also has 280,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 8%, 30 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.4%, what is the percent market value of debt for this firm? (Answer to the nearest hundredth of a percent, but do not use a...

The current stock price for a company is $38 per share, and there are 8 million...

The current stock price for a company is $38 per share, and there are 8 million shares outstanding. The beta for this firms stock is 0.8, the risk-free rate is 4.3, and the expected market risk premium is 6.2%. This firm also has 230,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 7%, 28 years to maturity, a face value of $1,000, and an annual yield to maturity of 8%. If the corporate tax...

The current stock price for a company is $37 per share, and there are 2 million...

The current stock price for a company is $37 per share, and there are 2 million shares outstanding. This firm also has 280,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 7%, 24 years to maturity, a face value of $1,000, and an annual yield to maturity of 6.2%, what is the total market value of this firm? (Answer to the nearest dollar, but do not use a dollar sign).

The current stock price for a company is $37 per share, and there are 3 million...

The current stock price for a company is $37 per share, and there are 3 million shares outstanding. This firm also has 110,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 7%, 30 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.3%, what is the percent market value of debt for this firm? (Answer to the nearest hundredth of a percent, but do not use a...

37. The current stock price for a company is $39 per share, and there are 8 million...

37. The current stock price for a company is $39 per share, and there are 8 million shares outstanding. This firm also has 130,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 8%, 16 years to maturity, a face value of $1,000, and an annual yield to maturity of 7.3%, what is the total market value of this firm? (Answer to the nearest dollar, but do not use a dollar sign). 38. The current stock...

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