The total book value of the firm's equity is $10 million; book value per share is $20. The stock sells for a price of $35 per share, and the cost of equity is 13%. The firm's bonds have a face value of $4 million and sell at a price of 120% of face value. The yield to maturity on the bonds is 7%, and the firm's tax rate is 35%. Find the WACC of William Tell Computers. (Do not round intermediate calculations. Round your answer to 2 decimal places.) WACC

The total book value of the firm's equity is $10 million; book value per share is $20. The stock sells for a price of $35 per share, and the cost of equity is 13%. The firm's bonds have a face value of $4 million and sell at a price of 120% of face value. The yield to maturity on the bonds is 7%, and the firm's tax rate is 35%. Find the WACC of William Tell Computers. (Do not round intermediate calculations. Round your answer to 2 decimal places.) WACC

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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