Find the expected market return

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Reference no: EM132949530

Your company is asking you as a CFO to consider your capital costs for your long term investment projects. As you collect the recent capital information as the follows:

1. Your company issue the common shares of Cnd$100/share, 2 million shares outstanding; Your company Beta is 1.7 and market risk free rate is 2% at this moment, and expected market return is 7%;

2. Your company issue the bond at the current quote of 970; Your coupon payment rate is 7%, while payment term is semi annual; the bond tenor is 14 years; Your bond face value is 250million;

3. Your company also issue some preferred stocks at cnd$70/share, with dividend payment of cnd7/share, total amount of issue is 100million;
Your corporate tax rate is 27%;

Please calculate your company's WACC

Reference no: EM132949530

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