A E. - A A x Q A A . . = = + $. ABCDE = AaBbcode AaBbCcDc ABCD No Spacing Heading 1 Heading 2 WACC Exercise Equity Common Stock S/O: 2M Stock Price $20/share Beta: .8 Debt Issued: $500,000 Price: 98% Coupon: 5% (semiannual) Maturity: 10 years Tax Rate: 21% Market rf = 2.5% ERm = 8% Required: What is the WACC? cent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1 how the bonds would be reported on the January 2, 2007, balance sheet if they are issued at 98. MacBook Air SOS % & *