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Filer Manufacturing has 8.3 million shares of common stock outstanding.

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Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53. Filer Manufacturing also has two bond issues outstanding. The first issue of bond has a total value of $70 million and the bond price is $1,083. The second issue has a total value of $60 million and the bond price is $1,089. Suppose the company?s stock has a beta of 1.2. The risk-free rate is 3.1%, and the expected market return is 10.1%. The pre-tax cost of debt for the two bond issues is 6.2%. The tax rate is 35%.;What is the WACC of Filer?;Additional Requirements;Level of Detail: Show all work

 

Paper#26942 | Written in 18-Jul-2015

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