What is the beta for the companys stock

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You are told the WACC for the following firm is 7.95 percent. The company pays no dividends. What is the beta for the company’s stock? Debt: 100,000 bonds with a par value of $1,000 and a quoted price of 112.30. The bonds have coupon rate of 6.1 percent and 25 years to maturity. 250,000 zero coupon bonds with a quoted price of 18.70 and 30 years to maturity. Preferred Stock: 95,000 shares of 5.2 percent preferred selling at a price of $105. Common Stock: 2,600,000 shares of stock selling at a market price of $81. Market: The market risk premium is 7 percent and the risk-free rate is 2.8 percent. The company is in the 40 percent tax bracket.

Reference no: EM13883547

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