Your company is asking you as a CFO to consider your capital costs for your long term investment projects. As you collect the recent capital information as the follows:
Your company issue the common shares of Cnd$100/share, 2 million shares outstanding; Your company Beta is 1.7 and market risk free rate is 2% at this moment, and expected market return is 7%;
Your company issue the bond at the current quote of 970; Your coupon payment rate is 7%, while payment term is semi annual; the bond tenor is 14 years; Your bond face value is 250million;
Your company also issue some preferred stocks at cnd$70/share, with dividend payment of cnd7/share, total amount of issue is 100million;
Your corporate tax rate is 27%; What is the WACC of company?

Answer rating: 100% (QA)

Amounts cnd 1 Cost of Equity Share price 100 Shares outstanding 2 million Market value of Equity sha... View the full answer