Annual coupon bonds with maturity

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Reference no: EM131055604

TAFKAP Industries has 2 million shares of stock outstanding selling at $16 per share, and an issue of $12 million in 8.0 percent annual coupon bonds with a maturity of 15 years, selling at 105 percent of par. Assume TAFKAP’s weighted average tax rate is 34 percent and its cost of equity is 14.0 percent. What is TAFKAP’s WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131055604

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