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25 Jul 2020
Bell Media has common stock trading at a price of $74, and a market capitalization of $23 billion. The firm also has preferred stock worth a total of $6 billion, currently trading at $54 per share and paying a dividend of $4.50 per share. The firm's beta is 1.2, the risk-free rate is 2.4%, and the market risk premium is 6%. The firm has $28 billion of debt with a yield to maturity of 4%. If the firm's tax rate is 30%, what is Bell's WACC
Bell Media has common stock trading at a price of $74, and a market capitalization of $23 billion. The firm also has preferred stock worth a total of $6 billion, currently trading at $54 per share and paying a dividend of $4.50 per share. The firm's beta is 1.2, the risk-free rate is 2.4%, and the market risk premium is 6%. The firm has $28 billion of debt with a yield to maturity of 4%. If the firm's tax rate is 30%, what is Bell's WACC