Example Two Assume a firm with 1000000 shares at a market value of $4 and 10000 debentures issued with a 12% coupon paid annually and a remaining term of 10 years, and it is selling at $93.84 (FV $100, interest paid annually). The equity has a beta of 1.54, the most recent dividend was 32 cents and dividends are expected to grow at 10% indefinitely. What is WACC? Tax rate = 33%. Rf = 8% and Rm = 15%