Debt: 60000 bonds with a coupon rate of 6 percent and a current price quote of 109.5; the bonds have 20 years to maturity. 230,000 zero coupon bonds with a price quote of 17.5 and 30 years until maturity. Assume semiannual compounding. Preferred stock: 150000 shares of 6 percent preferred stock with a current price of $79, and a par value of 100. Common stock: 2600000 shares of common stock; the current price is$65 , and the beta of the stock is 1.15. Market: The corporate tax rate is 40 percent, the market risk premium is 7 percent, and the risk-free rate is 4 percent. What is the WACC for the company?
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