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Customer Question

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?

Submitted: 330 days and 19 hours ago.
Category: Single Problem
Value: $60
Status: CLOSED
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Expert:  BusinessTutor replied330 days and 18 hours ago.

Hello ladbug

 

Is this all the given data? Please advise the name of the book you are using: Title, author's name, and edition

 

Thank you

Customer replied330 days and 18 hours ago.

that is all the information

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Expert:  BusinessTutor replied330 days and 18 hours ago.

Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition

 

Thank you

Customer replied330 days and 17 hours ago.

there is no book and it due anytime

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Expert:  BusinessTutor replied330 days and 17 hours ago.

You cannot calculate the WACC without the Cost of Equity. So I will opt out in case another expert can help

Customer replied330 days and 17 hours ago.

thanks

 
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