Explore BrainMass
Share

Explore BrainMass

    WACC of William Tell Computers

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com October 9, 2019, 4:15 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/wacc-of-william-tell-computers-26835

    Attachments

    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.

    $2.19