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Author Question: Rekall Inc., the memory implant company, has 7 million shares of common stock outstanding and ... (Read 218 times)

future617RT

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Rekall Inc., the memory implant company, has 7 million shares of common stock outstanding and 100,000 semi-annual bonds. The bonds have 6 years to maturity, a 9.05% coupon rate and a face value of $1,000 each. The common stock currently sells for $29.94 and just paid a dividend of $2.50. Dividends are paid annually and are expected to grow in perpetuity at 3%. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The after-tax cost of debt is 7.294%, and the cost of equity is 11.6%. What is Rekall's WACC?
◦ 7.09%
◦ 9.51%
◦ 9.94%
◦ 10.27%
◦ 11.24%


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Marked as best answer by future617RT on Apr 25, 2021

Ddddd

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future617RT

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Reply 2 on: Apr 25, 2021
Excellent


okolip

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Reply 3 on: Yesterday
Wow, this really help

 

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