Bottled Water is a listed European company which has a corporate finance structure as shown below. What is the company’s WACC?

Transcribed Image Text:

Debt: Preferred stock: Common stock: Market: 50,000 bonds with a quoted price of 119.80, providing an 8 per cent coupon rate. The bonds have 25 years to maturity. There are also 150,000 zero-coupon bonds outstanding, with a quoted price of 13.85 and 30 years until maturity. 120,000 shares of 6.5 per cent preferred with a current price of 112 and a par value of 100. 2 million shares of common stock. The current share price is 65, and the beta of the stock is 1.1. The corporate tax rate is 40 per cent, the market risk premium is 5 per cent, and the risk-free rate is 4 per cent.