A corporation has 10,000 bonds outstanding with a 6% annual coupon rate , 8 years to maturity
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Question:
- A corporation has 10,000 bonds outstanding with a 6% annual coupon rate , 8 years to maturity , a $1,000 face value , and a $1,100 market price.
- The company's 100,000 shares of preferred stock pays a $3 annual dividend , and sell for $30 per share.
- The company's 500,000 shares of common stock sell for $25 per share, have a beta of 1.5 , the risk free rate is 4% , and the market return is 12%.
- Questions : Assuming a 40% tax rate , what is the company's WACC?
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