Question: Typical problem progression...TAC Co. is reviewing their capital structure. They have $1,500,000 in bonds at a cost to maturity of 9%, 100,000 shares of stock

Typical problem progression...TAC Co. is reviewing their capital structure. They have $1,500,000 in bonds at a cost to maturity of 9%, 100,000 shares of stock at $25.00. Cost of equity is 14%. Tax 30%. What is their WACC now?

WACC now	Loan	Bond	Equity
	0	1,500,000	a.
Cost		0.09	0.14
After tax cost		b.	c.
Weight		d.	e.

WACC		f.

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