Estimate the Company’s WACC Assignment | Homework For You
January 29th, 2020
Capital (10 points) Daves Inc, recently hired you as a consultant to estimate the company’s WACC. You have obtained the following information. )The firm’s bond has a yield-to-maturity of 6.0356.
(2) The company’s tax rate is 40.
(3) DO $0.90; P0- $47.50; and g-7.00% (constant); and Flotation cost%-6.00%
(4) The target capital structure consists of 35 debt and the balance is common equity.
A) What is the cost of equity raised by selling new common stock? (5 points)
B) What is the WACC? Do not round your intermediate calculations. (5 points) Get Finance homework help today