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Author Question: Bruner Breakfast Foods balance sheet shows a total of $30 million long-term debt with a coupon rate ... (Read 87 times)

allihubbard

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on: Aug 7, 2023
Bruner Breakfast Foods’ balance sheet shows a total of $30 million long-term debt with a coupon rate of 9%. The yield to maturity on this debt is 11%, and the debt has a total current market value of $25 million. The balance sheet also shows that that the company has 10 million shares of stock, and the total of common equity (common stock plus retained earnings) is $40 million. The current stock price is $5 per share, and shareholders’ required rate of return, rs, is 13%. The company recently decided that its target capital structure should have 50% debt, with the balance being common equity. The tax rate is 35%. Calculate WACCs based on target, book, and market value capital structures, and then find the sum of these three WACCs.

◦

30.04%


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31.62%


◦

31.95%


◦

32.40%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by allihubbard on Aug 7, 2023

reason44

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Reply #1 on: Aug 7, 2023
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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allihubbard

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

bitingbit

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Reply 3 on: Yesterday
Wow, this really help

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