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What is the ning-tech after-tax wacc

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Reference no: EM133068631

a) You are presented with the following information about Ning-tech Corporation:

  • The company has 10 million ordinary shares outstanding, priced at $45 and with a beta of 1.35. The market risk premium is 9.5% p.a. and Treasury bills are yielding 2% p.a.
  • There are 1.2 million preference shares outstanding with a par value of $100 and 7.2% dividend. The market price of the preference shares is $60.
  • The company has 120,000 of semiannual coupon bonds outstanding with $1,000 par value. The bonds are selling at 120% of par. The yield to maturity is 7.5% p.a. and the corporate tax rate is 35%.

What is the Ning-tech's after-tax WACC?

Reference no: EM133068631

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