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Unformatted text preview: What is its yield to maturity? their bond issue. They have 2.72 million shares outstanding with a price of $50.00 on the exchange. What is the Debt/Equity ratio (in market value) for the Oracles of Zodiac? This question will require information from question 8. The Oracles of Zodiac face a corporate tax rate of 17.60%. What is its WACC? You will need your answers to questions 7, 8, and 9 to answer this question. Dirty Donuts face a corporate tax rate of 59.10%. Their capital structure is 15.90% preferred stock, 51.40% corporate stock, and 32.70% debt. Their investors in preferred stock expect a 6.80% rate of return, their investors in common stock expect a 9.70% rate of return, and their debtholders expect a 4.60% rate of return. What is their WACC?...
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This note was uploaded on 11/04/2011 for the course FIN 101 taught by Professor Staff during the Fall '11 term at Texas State.
- Fall '11