Question: Inputs for WACC (Re computed using CAPM only) LT Debt: 8000 bonds outstanding of a 5-year maturity; 1015 = PV; 4.2% = Coupon Rate (Semiannual)

  1. Inputs for WACC (Re computed using CAPM only)

LT Debt: 8000 bonds outstanding of a 5-year maturity; 1015 = PV; 4.2% = Coupon Rate (Semiannual)

Common Stock: 35,000 shares outstanding; $28 price today

Preferred Stock: 9000 shares, 3.5% dividend yield, $98 share price

Other CAPM Information:

ERm = 8%

Rf = 1.00%

Beta = 1.22

Tax Rate = 30%

Q9 Question:What is the WACC? (3 Points)

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