Question

You want to estimate the WACC for Acromantula Corporation. They have 1,250,000 shares of common stock outstanding, which paid a $2.50 dividend per share last year (you expect this to grow by 4% annually). The firm has a beta of 1.4, the risk-free rate is 1.2%, and the expected market return is 9%. They have no preferred stock. They have $22,000,000 (face value) in debt, with 21 years to maturity, a 7% semiannual coupon, and a current price quote of $1011.29 (per $1000 of face value). Their tax rate is 28%. What is their WACC? Assumptions: - Shares of Common Stock - Dividend per share - Cost of debt - Dividend growth rate - Cost of equity - Beta - Cost of preferred - Risk-free rate - Expected Market Return - Face value of debt - Value of debt - Years until maturity - Value of equity - Semiannual coupon - Value of preferred - Current Price of debt - Tax rate - Weight of debt - Weight of equity - Weight of preferred - WACC

          You want to estimate the WACC for Acromantula Corporation. They have 1,250,000 shares of common stock outstanding, which paid a $2.50 dividend per share last year (you expect this to grow by 4% annually). The firm has a beta of 1.4, the risk-free rate is 1.2%, and the expected market return is 9%. They have no preferred stock. They have $22,000,000 (face value) in debt, with 21 years to maturity, a 7% semiannual coupon, and a current price quote of $1011.29 (per $1000 of face value). Their tax rate is 28%. What is their WACC?

Assumptions:
- Shares of Common Stock
- Dividend per share
- Cost of debt
- Dividend growth rate
- Cost of equity
- Beta
- Cost of preferred
- Risk-free rate
- Expected Market Return
- Face value of debt
- Value of debt
- Years until maturity
- Value of equity
- Semiannual coupon
- Value of preferred
- Current Price of debt
- Tax rate
- Weight of debt
- Weight of equity
- Weight of preferred
- WACC

Added by Sergio P.

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