Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53. The company also has two bond issues…
Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60 million and a coupon rate of 7.5 percent and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years. Suppose the company’s stock has a beta of 1.15. The risk-free rate is 3.7 percent, and the market risk premium is 7 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company’s WACC?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
The post Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53. The company also has two bond issues… appeared first on nursing assignment tutor.
“Are you looking for this answer? We can Help click Order Now”
