Company market value debt to equity ratio

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FBA Corp. has 8 million shares of common stock outstanding. The current share price is $75.00. They just paid a dividend of $4.00 and the dividend growth rate is expected to be 6.0% from now on. The company has one bond issuance that matures in 21 years, has a total face value of $85 million, a 7.0% semiannual coupon, and it currently sells for 97 percent of par. What are the company's capital structure weights on a market value basis? What is the company's market value debt to equity ratio? If the tax rate is 21.0%, what is the company's WACC?

Reference no: EM133112512

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