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Homework answers / question archive / The current share price of common equity share is $320 and there are 2 million shares outstanding

The current share price of common equity share is $320 and there are 2 million shares outstanding

Finance

The current share price of common equity share is $320 and there are 2 million shares outstanding. The current selling price of preferred equity share is $400 and there are 500,000 such shares outstanding. The total debt outstanding for the firm, which is rated as a BBB rated firm, is $300 million. The expected return on equity shares based on CAPM is 15%, the cost of preferred equity shares is 13% and the cost of debt for BBB rated securities in Indian market is 11%. What is the WACC for the firm if the tax rate is 0%? 

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