Preferred stock outstanding

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Reference no: EM131615721

Titan Mining Corporation has 9 million shares of common stock outstanding, 250,000 shares of 6% preferred stock outstanding, and 105,000 7.5% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.25, the preferred stock currently sells for $91 per share, and the bonds have 15 years to maturity and sell for 93% of par. Each preferred stock has a par value of $100. The market risk premium is 8.5%, T-bills are yielding 5%, and Titan Mining’s tax rate is 35%. What is Titan Mining’s WACC?

Reference no: EM131615721

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