Calculate the firms wacc

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WACC problem:

A firm with a cost of equityequal to 8.5%,and a marginal tax rateof 35% ,has the following long term bonds outstanding:

Bond Principal Yield to maturity
1 $2,000,000 4.2%
2 $1,700,000 3.8%
3 $3,200,000 2.9%
4 $2,900,000 3.4%



The firm's total equityis $12,600,000

Calculate the firm's WACC.

SHOW ALL WORK .Your answer should be a percentage-formatted number with rounding to two decimals. For example, if your calculationresults in the number .062373, your answer should be written as "6.24%"

Reference no: EM132050051

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