A firm has 30 million shares outstanding that are trading at $15 per share. The firm issued bonds whose market value is $150 million. The corporate…
(b) What is the firm’s WACC? Outstanding sharesCurernt price 30 million15 Market value of bondsTax rateCost of equityCost of debt 150 million40%10%5% Unleavered cost of debt = 10% Firm’s WACC =EquityDebt Firm’s WACC…