Top answer: Q) Suppose a firm has 10.30 million shares of common stock…

  

Q) Suppose a firm has 10.30 million shares of common stock…  Q) Suppose a firm has 10.30 million shares of common stock outstanding at a price of $40.66 per share.  The firm also has 110000.00 bonds outstanding with a current price of $954.00. The outstanding bonds have yield to maturity 10.64%. The firm’s common stock beta is 0.85 and the corporate tax rate is 37.00%. The expected market return is 9.38% and the T-bill rate is 2.58%. Compute the following:     -Weight of Equity of the firm    -Weight of Debt of the firm    -Cost of Equity of the firm    -After Tax Cost of Debt of the firm    -WACC for the Firm Business Finance FIN 301