Market risk premium and risk-free rate

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Reference no: EM131970778

Given the following information for Kose, Inc, find the WACC. Assume the company's tax rate is 35%.

Debt: 10,000 9% coupon bonds outstanding, $1,000 par value, 25 years to maturity, currently selling for 100% of par, and the bonds make annual payments.

Common stock: 200,000 shares outstanding, selling for $60 per share; the beta is 1.15.

Market: 7% market risk premium and 3% risk-free rate.

Reference no: EM131970778

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