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what was Ashman's adjusted WACC before selling the bonds? ...

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Finance

what was Ashman's adjusted WACC before selling the bonds?
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Score: 0 of 1 p P11-17 (similar to) 1 of 2 (0 complete) HW Score: 0%, 0 of 2 pts Question Help Adjusted WACC Ashman Motors is currently an all-equity firm. It has two million shares outstanding, selling for $56 per share. The company has a bota of 13, with the current risk-free rate at 44% and the market premium at 6.6%. The tax rate is 35% for the company. Ashman has decided to sell $56 million of bonds and retire hall its stock. The bonds will have a yield to maturity of 75%. The bota of the company will rise to 1.8 with the new debt. What was Ashman's adjusted WACC before seling the bonds? What is its new WACC after selling the bonds and retiring the stock with the proceeds from the sale of the bonds? Hint. The weight of equity before seling the bond is 100% What was Ashman's adjusted WACC before selling the bonds? D% (Round to two decimal places)

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