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What is the company wacc for wtc

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Reference no: EM132992757

Problem 1: The total book value of WTC's equity is $8 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. The firm's bonds have a face value of $4 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 7%, and the firm's tax rate is 21%. What is the company's WACC?

Reference no: EM132992757

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