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GFC’s balance sheet shows a total of $25 million long-termdebt with a coupon rate of 8.50%. The yield to maturity on thisdebt is 8.00%, and the debt has a total current market value of $27million. The company has 10 million shares of stock, and the stockhas a book value per share of $5.00. The current stock price is$20.00 per share, and stockholders' required rate of return,rs, is 12.25%. The company recently decided that itstarget capital structure should have 35% debt and 65% commonequity. The tax rate is 40%. Calculate WACCs based on book, market,and target capital structures. What is the sum of these threeWACCs?
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