What is pinder co after-tax weighted

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Pinder Co has 20,000 bonds outstanding, each with a face value of $1,000. 12,000 of the 20,000 bonds pay a semi-annual coupon of 8% p.a. with 10 years left to maturity and an effective annual yield to maturity of 10%. 8,000 of the 20,000 bonds pay an annual coupon of 9% p.a. with 12 years left to maturity and an effective annual yield to maturity of 11%. The most recent coupon for both types of bonds have just been paid. Pinder Co's effective tax rate is 30%. Pinder Co has 10 million ordinary shares outstanding which are currently trading at $5 per share. Pinder Co's beta is 1.2, the risk-free rate is 3%, and the expected return on the market portfolio is 15%. Using the capital asset pricing model to estimate the cost of equity, what is Pinder Co's after-tax weighted average cost of capital? (Round to the nearest two digits)

Reference no: EM133119589

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