Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mobile inc. has 2 million shares of stock outstand

Mobile Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50...

60.1K

Verified Solution

Question

Finance

Mobile Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firms debt is publicly traded and was recently quoted at 90% of face value matures in 10 years. It has a total face value of $10 million, and it has a coupon rate of 8%. The risk-free rate is 2% and the market risk premium is 8%. Youve estimated that the firm has a beta of 1.20. The corporate tax rate is 40%.

Answer the following question

A . What is the percentage of equity used by Mobille Inc? AND. What is the WACC from Mobile Inc.?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

what are skin color pigments? Where are they found? How are they regulated?

Biology
Q

1. Calculate the approximate density of nuclear matter in g/cm3 . What would be the diameter...

Physics
Q

A paricle of mass 2kg is free to move al ong x axis under the...

Physics
Q

A certain type of light bulb has an average life of 1900 hours with a...

Statistics
Q

10 Apply the singular value decomposition to show that A Rmxn with rank r can...

Algebra
Q

Required information [The following information applies to the questions displayed below.] Sandra...

Accounting
Q

The following facts apply to Collins, an individual: In February of the current year, Hodge,...

Accounting
Q

HELP!!! Requlred Information Problem 8-5 (Algo) Various inventory costing methods...

Accounting
Q

Lindell Co produces wine. The company expects to produce 2.515.000 weiter bottles of Chablis in...

Accounting
Q

\begin{tabular}{|c|c|c|c|} \hline Date & Account Titles and Explanation & Debit & Credit \\ \hline c....

Accounting
Q

View Policies Cullumber Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold...

Accounting
Q

Maple Co. is a new Canadian controlled private corporation with active business income of $450,000...

Accounting