Question: WACC Problem (please show all work) WACC Problem Debt Common Preferred 50000 Semi Annual Bonds at 900 1000000 Shares at $60 100000 Shares at 103

WACC Problem (please show all work)

  1. WACC Problem

Debt Common Preferred

50000 Semi Annual Bonds at 900 1000000 Shares at $60 100000 Shares at 103

N= 10 Years Beta = 1.25 Dividend Rate = 11%

Coupon rate = 7% Market Rate = 12% Par Value = $100

FV = $1000 Risk Free Rate = 3%

Tax Rate = 30%

What is the WACC?

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