Question: Steed & Co, a high tech security and information retrieval firm, has 11.550 million shares of common stock outstanding which currently trade for $18.5 per

Steed & Co, a high tech security and information retrieval firm, has 11.550 million shares of common stock outstanding which currently trade for $18.5 per share. The company also has 125000 bonds each with a face value of $1,000 and priced at $1030. The bonds have 2 years to maturity and the next coupon is due in one year. The yield on the bonds is 5.15%. The company's beta is 0.85, the risk free rate is 2.90% and the market risk premium is 5.2%. The tax rate is 23%.

What is Steed & Co.'s WACC?

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