Question: Please help!! this is finance problem! 5 YR project Debt: 15k bonds @96% of par Investment: Land $7.4M, Plant $8.8M dep to zero over 8

Please help!! this is finance problem!

5 YR project

Debt: 15k bonds @96% of par

Investment: Land $7.4M, Plant $8.8M dep to zero over 8 years, WC $825k

Equity: 300,000 shares @$68/share

Rf = 5.2%, Beta = 1.25, Rm-Rf = 7.5%

Pref stock: 20,000 shares @ $78/sh

Dividend = $6,

SV = $1.75M

Sales = $110M

Costs = $102.25M

Tax rate = 34%

Mgmt wants to adjust WACC up 2% to account for risk

what is WACC?

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