The Eastinger Corporation has a capital structure consists of 125,000 bonds and 1.5 million shares of common stock. Their stock sells at $100 per share. The company's annual coupon bonds have 12 years to maturity, an 8 percent annual coupon, a face value of $1,000, and a current price of $927.52. The risk free rate is 4 percent and the market risk premium is 6 percent. The company’s common stock has a beta of 1.2. Eastinger's marginal tax rate is 21 percent. What is the company’s weighted average cost of capital (WACC)? (Please show your work in the space provided. Be sure to show your numbers in the relevant formulas. 

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to find the cost ... View the full answer