Offer coverage of abortifascient birth control methods

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1. A company has $119 million in outstanding bonds, and 10 million shares of stock currently trading at $39 per share.The bonds pay an annual coupon rate of 6% and is trading at par. The company's beta is 0.9, its tax rate is 40%, the risk-free rate is 4%, and the market risk premium is 5%. What is this firm's WACC?

2. Evaluate the decision of Hobby Lobby to spend considerable resources in refusing to offer coverage of “abortifascient” birth control methods and taking their fight to the U.S. Supreme Court.

Reference no: EM131947692

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