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Author Question: Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture ... (Read 42 times)

KWilfred

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on: Apr 25, 2021
Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons. Because of the shortage of helium, the balloons will be filled with nitrous oxide instead. NO Balloons plans to finance the business with common equity and long-term debt. It plans to sell 12 million shares of common stock and 200,000 bonds. Each bond will have a coupon rate of 5% and will have a face value of $1,000.The common stock will be issued at a price of $19.5 a share. The bonds will sell for 89% of face value. The after-tax cost of debt is 4% and the cost of equity of 9.275%. What is NO Balloons' WACC?
◦ 5%
◦ 6%
◦ 7%
◦ 8%
◦ 9%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by KWilfred on Apr 25, 2021

amynguyen1221

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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KWilfred

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

DylanD1323

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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