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Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGUed one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response 90

Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGUed one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response 90

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SA Cost of Capital i Saved Help Save & Exit Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGued one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals. but don't include % sign. Numeric Response 90 < Prev 7 of 11 Next > 17 18 19 20 21 22 23 24 Sheet1 + Ready Copyright © 2005-2016 Apereo, Inc. Powered by Apereo CAS 6.2.8 3/24/
Transcribed Image Text:SA Cost of Capital i Saved Help Save & Exit Nacho Libre S.A. has 4,000.000 common shares outstanding that trade for $45.00 per share. The company has also isGued one bond with a par value of $20,000.000 that currently trades at 100 percent of par. You observe that the company's reauired return on stock is 16.00 percent and the (after-tax) yield to maturity on its debt is 3.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals. but don't include % sign. Numeric Response 90 < Prev 7 of 11 Next > 17 18 19 20 21 22 23 24 Sheet1 + Ready Copyright © 2005-2016 Apereo, Inc. Powered by Apereo CAS 6.2.8 3/24/
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