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Question 12 (3.125 points) ADATA Technology Company's balance sheet shows a total of $70 million long-term debt with a c
Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
- Question 12 3 125 Points Adata Technology Company S Balance Sheet Shows A Total Of 70 Million Long Term Debt With A C 1 (53.64 KiB) Viewed 21 times
Question 12 (3.125 points) ADATA Technology
Company's balance sheet shows a total of $70 million long-term debt with a coupon rate of 9%. The yield to maturity on this debt is 16%, and the debt has a total current market value of $75.6 million. The balance sheet also shows that the
company has 15 million shares of stock, and the stock has a book value per share of $10. The current stock price is $32 per share, and stockholders' required rate of return, rs, is 25%. The firm's tax rate is 30%. Calculate the firm's WACC using market value weights. 19.05% 20.61% 22.46% 23.12% 21.69%