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kherson [118]
3 years ago
12

Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to

maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 40%. What is the WACC of the firm based on the market values of debt and equity?

Business
1 answer:
Vedmedyk [2.9K]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Answer:

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Explanation:

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