Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGUed one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response 90

Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGUed one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response 90

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 12PROB

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