This paper circulates around the core theme of Finding the WACC : Given the following information for Fairview Co together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 59. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Finding the WACC : Given the following information for Fairview Co., find the WACC. Assume the company’s tax rate is 35 percent.Debt: 7,000 8 percent coupon bonds outstanding, $1,000 per value, 20 years to maturity, selling for 104 percent of par; the bonds make semi-annual payments.Common Stock: 120,000 shares outstanding, selling for $82 per share; the beta is 1.20Preferred stock: 10,000 shares of 5.25 percent preferred stock outstanding, current selling for $80 per share.Market: 7 percent risk premium and 4.5 percent risk-free rate.