Weighted average cost of capital for this firm

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The current stock price for a company is $41 per share, and there are 8 million shares outstanding. The beta for this firms stock is 1.4, the risk-free rate is 4.4, and the expected market risk premium is 5.6%. This firm also has 170,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 8%, 24 years to maturity, a face value of $1,000, and a current price of 1,059.68. 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: EM132046981

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