4 The total book value of Attrex’s equity is $192 million, and book value per share is $20. The stock has a market-to-bo
Posted: Tue Jan 18, 2022 12:59 pm
4
The total book value of Attrex’s equity is $192 million, and
book value per share is $20. The stock has a market-to-book ratio
of 1.5, and the cost of equity is 12%. The firm’s bonds have a
face value of $25 million and sell at a price of 108% of face
value. The yield to maturity on the bonds is 4.9%, and the firm’s
tax rate is 25%. Find the company’s WACC.
The total book value of Attrex’s equity is $192 million, and
book value per share is $20. The stock has a market-to-book ratio
of 1.5, and the cost of equity is 12%. The firm’s bonds have a
face value of $25 million and sell at a price of 108% of face
value. The yield to maturity on the bonds is 4.9%, and the firm’s
tax rate is 25%. Find the company’s WACC.