What is c4 weighted average cost of capital

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Charlie's Computer Correction Connection (C4) runs a chain of computer repair franchises. C4's stock sells for $50 per share and has 1,000,000 shares outstanding. C4 just paid annual dividend of $2 per share and expects the growth rate to be 3% anuually. C4 also has 10,000 bonds outstanding, maturing in 8 years with a face value of $1,000 each. The bonds have a 7% coupon rate(make semi-annual coupon payments) and currently sell for $1,000. The tax rate is 30%. What is C4's weighted average cost of capital (WACC)?

Reference no: EM133069654

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