Weighted average cost of capital for firm

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Reference no: EM131087776

The current stock price for a company is $49 per share, and there are 3 million shares outstanding. The beta for this firms stock is 1.4, the risk-free rate is 4.1, and the expected market risk premium is 6.2%. This firm also has 260,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 10%, 23 years to maturity, a face value of $1,000, and a current price of 989.05. If the corporate tax rate is 36%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign).

Reference no: EM131087776

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