Determining the wacc-integrated products co

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The Integrated Products Co. currently has debt with a market value of $280 million outstanding. The debt consists of 9 percent coupon bonds (paying semi-annually) that have a maturity of 15 years and are currently priced at $1440.03 per bond. The firm also has 12 million shares of common stock outstanding currently priced at $32.11 per share. The stock's beta is 1.22, the market risk premium is 12.4% and T-bills yield 2.4%. If the company is subject to a 30% marginal tax rate, then what is its WACC?

Reference no: EM132509889

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