Find the wacc of company a

Reference no: EM13289807

The total book value of the firm's equity is $13 million; book value per share is $26. the stock sells for a price of $50 per share, and the cost of equity is 16%. the firm's bonds have a face value of $7 million and sell at a price of 135% of face value. the yield to maturity on the bonds is 10%, and the firm's tax rate is 35%. find the wacc of company a.

Reference no: EM13289807

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