Common stock and preferred stock-what is company wacc

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Given the following information, what is the company’s WACC?

Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3

Bonds: 10,000 bonds outstanding, $1,000 face value each, 8% annual coupon, coupons paid semi-annually, 22 years to maturity, market price = $1,101.23 per bond

Preferred Stock: 50,000 shares, $7 coupon payment, market price = $108, par value $100

Market risk premium = 8.6%, risk-free rate = 4.5%, marginal tax rate = 34%

Reference no: EM131865498

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