Consider a firm with the following information:
Debt: 8,000 coupon bonds outstanding, each bond has a par value of
€1,000 par value, providing a 4% coupon rate, 15 years to maturity,
selling for 105 percent of par; the bonds make semi-annual
payments. The yield to maturity is 3.57%.
There are also 5,000 zero-coupon bonds outstanding, €1,000 par
value, selling for 75 percent of par and 4 years until maturity.
The yield to maturity is 7.46%.
Equity: 100,000 shares outstanding, selling for 250 EUR per share;
the beta is 1.5.
Market: 8% market risk premium and 2% risk-free rate. Corporate tax
rate is 30%.
Calculate the firm's WACC in %. Enter your answer with 2
decimals and do not provide the %-sign in your answer (e.g. write
72.3333% as 72.33).
Consider a firm with the following information: Debt: 8,000 coupon bonds outstanding, each bond has a par value of €1,00
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am