Find what is the company wacc

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Reference no: EM132902879

You are given the following information for a firm. Assume the company's tax rate is 24 percent.

Debt:

7,000 6.8 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock:

400,000 shares outstanding, selling for $58 per share; the beta is 1.14.

Market:

7 percent market risk premium and 4.8 percent risk-free rate.

Problem 1: What is the company's wacc?

Reference no: EM132902879

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