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What is the company wacc

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Reference no: EM133036144

Question - The Company has collected the following information:

Its capital structure (in market value terms) consists of 40 percent debt (i.e. D/(E+D) = .4) and 60 percent common equity.

Company has 20-year bonds outstanding with a 10.5% annual coupon that are trading at par.

Company's tax rate is 39%.

Risk-free rate is 3%.

Market risk premium is 5%.

Stock's beta is 1.2.

Required - What is the company's WACC?

Reference no: EM133036144

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