Shares outstanding and market risk premium

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Boeing has 50 million shares outstanding and is trading at $40 per share. The Beta is 1.15. The market risk premium is 9% and the risk-free rate is 5%. There is $1 billion in outstanding debt and it is trading at 105. The coupon rate is 9%, semiannual coupons and there is 15 years to maturity. The tax rate is 40%. Calculate Boeing's WACC.

Reference no: EM131360851

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