What is the current market value of the stock

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PT KP 182 Tbk as a multinational company in export and import from Indonesia has a capital structure as follows: (1) value of debt (D) $2.5 million; (2) interest rate (Rd) 10%; and (3) cost of equity (Rs) 15%. The stock is traded at $30 per share, and the stock outstanding is 600,000 shares. The tax rate is 40% (T). The market is stable and therefore the firm expects no growth, so all earnings are paid out as dividends.

a. What is the current market value of the stock, and the firm's total market value.

b. What is the firm's current weighted average cost of capital (WACC). (Hint: please use your own assumptions to answer the questions if the information is not clear)

Reference no: EM132544505

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