Your boss asks you to look at East Africa Airways. It has debt with a...
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Your boss asks you to look at East Africa Airways. It has debt with a book value of $20M, currently trading at 85% of book value. It also has book value of equity of $30M, and 2M shared of common stock tracing at $4.75 per share. What weights should be used for debt ad equity in calculating its WACC? (3 points)
B) Calculate SAAs cost of debt (after tax).
C) What is SAAs weighted average cost of capital?
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