Business, 10.03.2020 02:57, mjr2002june

The total book value of WTC’s equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firm’s bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to matu- rity on the bonds is 9%, and the firm’s tax rate is 40%. Find the company’s WACC. (LO13-1)

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The total book value of WTC’s equity is $10 million, and book value per share is $20. The stock has...