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Find the wacc for abc corp using the information

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Reference no: EM131015813

Finance question:

 Find the WACC for ABC Corp using the information provided below.

Common Stock:   300,000 shares outstanding, selling for $30 a share.  Beta is 0.85.

Preferred Stock:   50,000 shares outstanding, selling for $65 a share.  The stock pays a

$5 annual dividend.

Debt:   9,000 8 percent coupon bonds outstanding selling at 115 percent of par. Current

YTM is 6.5%.

Market:   8 percent market risk premium and 2.5 percent risk free rate.

 

 

Reference no: EM131015813

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