Calculate the wacc for baron co

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Problem 1: You are given the following information concerning Baron Co. Calculate the WACC for Baron Co.

Debt: 18,726 5% coupon bonds outstanding, quoted at 105, with 20 years to maturity. These bonds pay interest semiannually.
Common Stock: 350,000 shares common stock selling for $50.15 per share. The stock has a beta of 1.08.
Preferred Stock: 10,000 shares of preferred stock with a dividend of $5.20 per share. It is currently selling at $106.85 per share.
Market: The market premium is 7.5%, and the risk-free rate of return is 2.5%.
tax bracket = 35%

Reference no: EM132959380

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