Given the following information for a company, find its WACC. Assume the company's tax rate is $25$ percent. Debt: $17,000,5\mathrm{.}2$ percent coupon bonds outstanding, $$1,000$ par value, $10$ years to maturity, selling for $103$ percent of par; the bonds make semiannual coupon payments. Common stock: $450,000$ shares outstanding, selling for $$60$ per share; the beta is $1\mathrm{.}60.$ Market: $7\mathrm{.}2$ percent market risk premium and $3\mathrm{.}5$ percent risk$-$free rate.

 $10\mathrm{.}01\%$

Answer rating: 100% (QA)

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