Find wacc for the company if the tax rate is 33.6

Reference no: EM133325766

Question: Sanoma Bean is evaluating a new line of mixed nuts. Sanoma's beta is estimated to be 0.57, they have 5,000,000 outstanding shares that currently trade for a price of 23.7. Sanoma issued zero-coupon bonds 4 years ago; currently, the bonds have 11 years left to maturity. The quoted price for these bonds is 74.81 and face value is $2,000 per bond. The total face value outstanding of these bonds is $3,000,000. The expected return to the S&P 500 is currently 7.17% and the risk-free rate is 2.77%. Find the WACC for the company if the tax rate is 33.6%. Assume annual compounding if relevant.

Reference no: EM133325766

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