The total book value of WTC’s equity is $9 million, and book value per share is $18. The stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. The firm’s bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 6%, and the firm’s tax rate is 21%. What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
The total book value of WTC’s equity is $9 million, and book value per share is...
The total book value of WTC’s equity is $7 million, and book value per share is $14. 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 $4 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 9%, and the firm’s tax rate is 21%. What is the company’s WACC? (Do not round intermediate calculations. Enter your...
The total book value of WTC’s equity is $12 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 15%. The firm’s bonds have a face value of $8 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 5%, and the firm’s tax rate is 21%. What is the company’s WACC? (Do not round intermediate calculations. Enter your...
The total book value of WTC’s equity is $10 million, and book value is $20 per share. The stock market has a market-to-book ratio of 1.5 and cost of equity is 15%. The firm’s bonds have a face value of $5 million and sell at a price 110% of face value. The yield to maturity on the bonds is 9%, and the firm’s tax rate is 21%. Find the company’s WACC.
The total book value of WTC's equity is $9 million, and book value per share is $18. The stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 6%, and the firm's tax rate is 21%. What is the company's WACC? (Do not round Intermediate calculations. Enter your...
Problem 13-5 Calculating WACC (LO1) The total book value of WTC’s equity is $13 million, and book value per share is $26. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firm’s bonds have a face value of $9 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm’s tax rate is 40%. What is the company’s WACC?
The total book value of WTC's equity is $13 million, and book value per share is $26. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firm's bonds have a face value of $9 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm's tax rate is 21%. What is the company's WACC? (Do not round intermediate calculations. Enter your...
The total book value of WTC's equity is $12 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 15%. The firm's bonds have a face value of $8 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 5%, and the firm's tax rate is 21%. What is the company's WACC? (Do not round intermediate calculations. Enter your...
Problem 13-5 Calculating WACC (LO1) The total book value of WTC's equity is $8 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 13%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm's tax rate is 21%. What is the company's WACC? (Do not...
Hero Manufacturing has 8.9 million shares of common stock outstanding. The current share price is $73 and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate of 6.3 percent and sells for 109.3 percent of par. The second issue has a face value of $52.8 million, a coupon rate of 8.2 percent and sells for 113.1 percent of par. The...
Saved Help Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $20 per share and has a beta of 0.8. There are 2 million common shares outstanding. The market risk premium is 8% , the risk-free rate is 4%, and the firm's tax rate is 40%. BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth...