If the cost of equity for Bonanza Corp is 11% and with the knowledge that Ichabod’s current YTM is 7% and its coupon rate is 10%.
June 7th, 2024
If the cost of equity for Bonanza Corp is 11% and with the knowledge that Ichabod’s current YTM is 7% and its coupon rate is 10%. What is the firm’s WACC when the following capital weightings are: Common Equity 40%, Debt 60%. Assume a 35% tax rate.