Multiple Question Quiz
Question # 00105638
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Updated on: 09/20/2015 12:57 PM Due on: 09/20/2015
3) Given the following information for UARE Inc. Find the WACC.
Tax rate | 35 percent |
Debt: | |
Bonds outstanding: | 6000 |
Coupon on bonds: | 4 percent |
Par value of bonds: | $1000 |
Bonds selling at what percent of par: | 105 |
Bonds make coupon payments: | semi-annually |
Years to maturity of bonds | 25 |
Common Stock: | |
Shares Outstanding: | 185,000 |
Current price/share: | $58.00 |
Beta: | 1.10 |
Market Information: | |
Risk premium: | 7 percent |
Risk-free rate | 5 percent |
a) |
b) |
c) |
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Rating:
5/
Solution: Given the following information for UARE Inc. Find the WACC.