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What is the company WACC

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Question - You are given the following information for a firm. Assume the company's tax rate is 24 percent. Debt: 7,000 6.8 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock: 400,000 shares outstanding, selling for $58 per share; the beta is 1.14.

Market: 7 percent market risk premium and 4.8 percent risk-free rate.

What is the company's WACC?

Reference no: EM132934581

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