Currently, Bloom Flowers has a capital structure consisting of 20% debt and 88% equity Blooms stock has an 8% yield to maturity The risk free rate is 5% and the market risk premium is 6%. Using CAPM, Bloom estimates that the cost of equity is currently 12.5% The company has a 40% tax rate.a) What is Blooms current WACCB)What is the current beta on Bloom’s common stock ?c) What woud Bloom’s beta be if the company had no debt in it’s capital structure?(That is what is Bloom’s unlevered beta ? )
“Struggling with a similar assignment?” We can help!!
How it works – it’s easy
Place your Order
Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.
Make a payment
The total price of your order is based on number of pages, academic level and deadline.
We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.
Once complete, we’ll send your assignment via the email provided on the order form.