What is broad street parade corporation wacc

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Reference no: EM131972856

Broad Street Parade Corporation currently has 2 million equity shares outstanding trading at a price of $5 per share with a beta of 1.5. In addition, Broad Street Parade Corporation has $3 million in outstanding debt ($3.3 million in current market value) with a current market value of $1100, a coupon rate of 8 percent (annual payments), and 12 years to maturity. If the market risk premium is 7 percent, the risk free rate is 3 percent, and the appropriate tax rate is 15 percent, what is Broad Street Parade Corporation’s WACC?

Reference no: EM131972856

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