Using Excel. Given the following information for ONAIR Co., find the WACC. Assume the company’s tax rate is 35 percent. Show all work. Debt - 10,000, 5% semi-annual payment coupon bonds outstanding. $1,000 par value, 30 years to maturity. Selling for 98% of par value. Common Stock - 500,000 shares outstanding, selling for $70 per share, the beta is 1.2 Market - 8% market risk premium and 4% risk-free rate .
Using Excel. Given the following information for ONAIR Co., find the WACC. Assume the company’s tax rate is 35 percent. Show all work. Debt - 10,000, 5% semi-annual payment coupon bonds outstanding. $1,000 par value, 30 years to maturity. Selling for 98% of par value. Common Stock - 500,000 shares outstanding, selling for $70 per share, the beta is 1.2 Market - 8% market risk premium and 4% risk-free rate .
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
Problem 1PS
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Using Excel. Given the following information for ONAIR Co., find the WACC. Assume the company’s tax rate is 35 percent. Show all work. Debt - 10,000, 5% semi-annual payment coupon bonds outstanding. $1,000 par value, 30 years to maturity. Selling for 98% of par value. Common Stock - 500,000 shares outstanding, selling for $70 per share, the beta is 1.2 Market - 8% market risk premium and 4% risk-free rate . USING EXCEL.
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