Assume the company's tax rate is 35 percent.
 

Debt:	9,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock:	420,000 shares outstanding, selling for $60 per share; the beta is 1.03.
Market:	9 percent market risk premium and 5 percent risk-free rate.

 
What is the company's WACC?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to find the cost of debt cost of equi... View the full answer