What is wilson de ratio

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Problem: Wilson Inc. uses bonds and common shares to finance its investments and operations. The firm's debt consists of 20,000 bonds that are currently trading at a price of $1038.75 each and yielding a 2.75% spread above federal government debt of the same maturity. Wilson's 500,000 common shares are currently trading at a price of $48.85 each. The firm just paid a dividend of $3.20 per share and it expects the dividend to grow by five percent per year for the foreseeable future. The risk-free rate of interest is currently 2.95% and the market risk premium is estimated to be 6.45%. The company's average tax rate is 38%.

-What is Wilson's D/E ratio?

-Calculate Wilson's WACC

Reference no: EM133062787

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