INTC Inc. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $25 per share and the book value per share is $17. It has a bond issue outstanding with a face $50 million which currently trades at a discount and sell at 90% of face. If you were asked to calculate the weighted cost of capital what capital structure weights would you use?
INTC Inc. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $25 per share and the book value per share is $17. It has a bond issue outstanding with a face $50 million which currently trades at a discount and sell at 90% of face. If you were asked to calculate the weighted cost of capital what capital structure weights would you use?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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INTC Inc. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $25 per share and the book value per share is $17. It has a bond issue outstanding with a face $50 million which currently trades at a discount and sell at 90% of face.
If you were asked to calculate the weighted cost of capital what capital structure weights would you use?
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