What is the value of xyz corporation and its wacc

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Reference no: EM133346073

Question: Given the following information, what is the value of XYZ Corporation and its WACC?

Common Stock: 14. 2 million shares outstanding, price = $35 per share

Bond Issue 2: $175 million total face value, price = $850 per bond

-Beta = 1.15

required return = 12%

-Market risk premium = 9%

-Risk-free rate = 5%

-Coupon rate = 9%, semiannual coupons

-15 years to maturity

•Tax rate = 40%

Based on your WACC from above, if a company eventually recorded a 12 percent profit margin is the Company destroying or craeting value? discuss

Reference no: EM133346073

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