Company X has $25 million in outstanding debt and 10 million shares outstanding. The book value per share is $10, while the market value is $ 25. The company is currently rated A, its bonds have a yield to maturity of 10%, and the current beta of the stock is 1.06. The sixmonth T.Bill rate is 8% now, market premium is 5.5% and the company's tax is 40%. What is the company's current weighted average cost of capital?

Question

05-07-2024
Business

Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Company X has $25 million in outstanding debt and 10 million shares outstanding. The book value per share is $10, while the market value is $ 25. The company is currently rated A, its bonds have a yield to maturity of 10%, and the current beta of the stock is 1.06. The sixmonth T.Bill rate is 8% now, market premium is 5.5% and the company's tax is 40%. What is the company's current weighted average cost of capital?

Sagot :

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.

Assume that the probability above was 0.072. Choose the best interpretation of that probability below. Select the correct answer below: The probability t

You are assisting with a new 3 year old patient today and when you call her to come back for her appointment, she runs to her mother and clings to her. She look

Comparing a Function and Its InverseStudents are asked to graph the inverse, [tex]$f^{-1}(x)[tex]$[/tex], of an absolute value function, [tex]$[/tex]f(x)$[/tex]

In 25 words or fewer, where can bacteria be found on Earth?

Perform the indicated operation.[tex]\[ \frac{(a+b)^2}{a-b} \cdot \frac{a^3 - b^3}{a^2 - b^2} \div \frac{a^2 + ab + b^2}{(a - b)^2} = \][/tex]

why Hamilton thought judges needed protection for other branch

A patient has hard, nonpitting edema of the left lower leg and ankle. The right leg has no edema. Based on these findings, the nurse recalls that:a. Nonpitting,

Using the balanced equation for the combustion of octane $\left( C_8 H_{18} \right)$, answer the following questions.[tex]\[ 2 C_8 H_{18} + 25 O_2 \rightarrow

Any evidence that goes to prove the innocence of an accused is known as inculpatory evidence. a. trueb. false

Which factor promotes the diffusion of oxygen across the respiratory membrane?A. Pco2 in alveolar air being greater than the Po2 of deoxygenated bloodB. A high

Sagot :

Other Questions