WACC EXAMPLE - You are analyzing a capital structure. It has the following issues of capital. The company can NOT use the tax shelter. Determine the WACC and its parts. - Common Stock: - 45 million shares of Class A trading at $58 with a Beta of 1.2 - The current risk-free rate is 3.8% - The current market return on similar stocks is 12.8% - Preferred Stock: - 15 million shares trading at $79 - $100 face value - Dividend rate of 7% - Bonds: - 50,000 series 2053 's - 30 years trading at 98.5$1000 face 8% coupon - annual - 200,000 series 2045 's - 22 years trading at 102.5$2000 face 5\% coupon - annual What is the cost of Equity? What is the cost of Preferred? What is the cost of Debt? What is the weight \% of Equity? What is the weight \% of Preferred? What is the weight \% of Debt? What is the WACC