Calculate the wacc for def corp assuming it has the


Calculate the WACC for DEF Corp assuming it has the following target capital structure 60% Equity 30% Debt and 10% Preferred The tax rate is 30%

DEF has 7% semi-annual coupon bonds that mature in 10 years. The bonds are currently priced at 1200.00. The face amount of the bonds are 1000

DEF has 7% preferred with a 100 face value that is currently priced at 110.

DEF’s beta is 1.1, the Risk Free rate is 3% and the MRP is 6%; the stock is currently priced at $50 and the expected dividend is $2.00 and forecast to grow at 5% forever. Ignore flotation costs for your cost of equity calculation. Take the average of your two calculations for the cost of equity.

Calculate Value of ABC’s stock if expected FCF is $20 billion. The company has 40 billion in cash and 20 billion in debt. The WACC is 8% and the growth is expected to be 3% forever. Shares outstanding are 4 billion.

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Financial Management: Calculate the wacc for def corp assuming it has the
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