1000 outstanding bonds maturing in exactly 8 years with a face value of $1000. The bonds have an 8% coupon rate, make quarterly coupon payment and currently sell for 96% of par.
n=32
fv=1,000
pv= 960
pmt=20
i/y= 2.17
(annual) YTM= 8.7%
1,000,000 shares of stock outstanding. The stock just paid an annual dividend of $3 and currently sells for $30 per share. Revenues, income and dividends are expected to grow at 5% indefinitely.
Cost of Equity= 15.5 %
Use the following information from the past questions to find Cliff Corp's weighted average cost of capital (WACC) assuming a tax rate of 30%.