Greene Co. is planning a project for which it will issue new bonds. Bonds in the same risk class and with the same covenants, issued by another firm are currently priced at $954.90, have 25 years remaining to maturity, and pay coupons of $20 yearly, made in semi-annual payments. If Greene's marginal tax rate is 40.00%, it's cost of equity is 5.00% with an equity value of $23,000,000.00, and they have 15,000 bonds with a par value of $1,000.00 what is the WACC of this project?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC for Greene Co we need to determine the cost o... View the full answer