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    WACC of William Tell Computers

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    Find WACC of William Tell Computers. The total book value of the firm's equity is $10 million; book value per share is $20. The stock sells for a price of $30 per share, and the cost of equity is 15%. The firm's bond have a par value of $5 million and sell at a price of 110% of par. The yeild to maturity on the bonds is 9 percent, and the firm's tax rate is 40%.

    Please see attached template 11-10

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    Solution Preview

    Find input data to compute weights (E, D, and V):

    # shares = 10 M/20 = .5 M
    E = # ...

    Solution Summary

    WACC of William Tell Computers is figured.