LADYBUG123454 Posts: 1, Reputation: 1 New Member #1 Jun 24, 2012, 03:29 PM
The Longview Company has 1 million shares of common stocks outstanding:13 per share. The firm's shows a long-term debt \$7 million which the firm borrowed from Chase bank at 8% interest rate 5 years ago. Longview can obtain the same loan today at an interest rate of 4%. Chase just received an offer from Chase bank to buy Longview stock has a beta of 1.2 and is in the 34% marginal tax bracket. What is the WACC?

## Check out some similar questions!

WACC questions... HELP! [ 0 Answers ]

40% common stock, 13% preffered stock, 47% debt. Cost of common stock equity is 17.1% cost of preffered stock is 10.8%, the before tax cost debt is 7.5% and the firms tax rate is 35%. What is the weighted average cost of capital? 35% common stock, 65% debt. Debt issue of \$1000 par value , 6.5 %...

Can someone assist me as to how to approach this problem: Suppose a firm has 12.2 million shares of common stock outstanding with a par value of \$1.00 per share. The current market price per share is \$15.50. The firm has outstanding debt with a par value of 72.0 million selling at 101% of par....