Outstanding bonds-what is this firm wacc

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A company has $109 million in outstanding bonds, and 10 million shares of stock currently trading at $31 per share.The bonds pay a coupon rate of 8%. The company's beta is 0.9, its tax rate is 40%, the risk-free rate is 4%, and the market risk premium is 4%. What is this firm's WACC?

Reference no: EM131358169

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