question archive Using the following information calculate the WACC of Aqua Ltd

Using the following information calculate the WACC of Aqua Ltd

Subject:FinancePrice: Bought3

Using the following information calculate the WACC of Aqua Ltd. The company has 0.3 million shares outstanding at a price of $92 per share. The beta of common stock of is 1.2. The risk-free rate is 5% and the market risk premium is 7%. The company issued 11% preference shares with a total value of $ 25 million. The company issued 9% bonds of $33.6 million. The company pays corporate tax at 40 percent. A. 9.59% B. 9.89% C. 10.99% D. d.8.35% Investor X invested in three stocks equally. Return on his portfolio is 18%. Return of Stock A is 14% Return of Stock B is 15%. What is the return on Stock C? a) 8.33% b) -11.00% c) 25.00% d) 6.00%

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