You are trying to determine the WACC for a company. It has the following characteristics. a. The company had pre-tax net income of $55mm last year and paid taxes of $11mm. b. The company has $1,500mm of total liabilities, $100mm of accounts payable, and $600mm of long-term debt. c. The company has 220mm shares authorized, 45mm shares issued, and 10mm shares of treasury stock. The stock now trades at $19.45 per share. d. the 10 year Treasury rate is 3% e. The pre-tax cost of debt is 7% f. The company's Beta is 2.44 and the market return for equities is 9%. What is the WACC? Use the correct symbol and round to the nearest O decimal places.

You are trying to determine the WACC for a company. It has the following characteristics. a. The company had pre-tax net income of $55mm last year and paid taxes of $11mm. b. The company has $1,500mm of total liabilities, $100mm of accounts payable, and $600mm of long-term debt. c. The company has 220mm shares authorized, 45mm shares issued, and 10mm shares of treasury stock. The stock now trades at $19.45 per share. d. the 10 year Treasury rate is 3% e. The pre-tax cost of debt is 7% f. The company's Beta is 2.44 and the market return for equities is 9%. What is the WACC? Use the correct symbol and round to the nearest O decimal places.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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