Give me answer within an hour please its very urgent I will give you upvotes ...thankyou.. Weighted Average Cost of CapitalThe Mystic Company is trying to determine its WACC. The following data is available:U.S. Treasury Bond rateDow Jones 20 yr. average retunCurrent share priceMystic's BetaMystic's tax rateDividends paid per shareMystic's debt ratioBank's loan rate to Mystic4%8%$401.321%$1.5060%8%Estimate Mystic's WACCWhat does it's WACC represent and how should it be used?Explain what the cost of equity is.Why do we calculate the after tax cost of debt? Why not the after tax cost of equity?

WACC is the weighted average cost of capital that includes the weighted cost of equity and weighted…

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pany is trying to determine its WACC. The following data is avail Bond rate yr. average return rice 4% 8% $40

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 13EP

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Question

Give me answer within an hour please its very urgent I will give you upvotes ...thankyou..

Weighted Average Cost of Capital
The Mystic Company is trying to determine its WACC. The following data is available:
U.S. Treasury Bond rate
Dow Jones 20 yr. average retun
Current share price
Mystic's Beta
Mystic's tax rate
Dividends paid per share
Mystic's debt ratio
Bank's loan rate to Mystic
4%
8%
$40
1.3
21%
$1.50
60%
8%
Estimate Mystic's WACC
What does it's WACC represent and how should it be used?
Explain what the cost of equity is.
Why do we calculate the after tax cost of debt? Why not the after tax cost of equity?

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