2 Points each question (10 Points Total) Q) Suppose a firm has 13.50 million shares of common stock outstanding at a pri
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2 Points each question (10 Points Total) Q) Suppose a firm has 13.50 million shares of common stock outstanding at a pri
question (10 Points Total) Q) Suppose a firm has 13.50 million shares of common stock outstanding at a price of $40.66 per share. The firm also has 368000.00 bonds outstanding with a current price of $1,070.00. The outstanding bonds have yield to maturity 9.35%. The firm's common stock beta is 0.89 and the corporate tax rate is 40.00%. The expected market return is 10.48% and the T-bill rate is 3.61%. Compute the following: -Weight of Equity of the firm -Weight of Debt of the firm -Cost of Equity of the firm -After Tax Cost of Debt of the firm -WACC for the Firm
2 Points each