Calculate abc companys wacc

Reference no: EM133360240

ABC company has a capital structure with debt and equity. Debt - $50 million face value bonds maturing in 15 years with a coupon rate of 4% paid semi-annually. Similar bonds are selling at 97.5. Equity - There are 2,000,000 shares outstanding. The investor's return is 10%. The next dividend is $3.5 with a growth rate of 4% into the future. Tax rate is 30%. Given the following information, calculate its WACC.

Reference no: EM133360240

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