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What is the company WACC

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Reference no: EM133101096

Question - A company has 1,250 bonds outstanding with a market value of $980 each. The pretax cost of debt is 7.2 percent. The firm also has 46,000 shares of common stock outstanding at a price per share of $32 and a beta of 1.21. The risk-free rate is 2.4 percent, the market risk premium is 7.3 percent, and the tax rate is 35 percent. What is the company's WACC?

a. 9.03%

b. 9.79%

c. 9.98%

d. 10.54%

e. 8.26%

Reference no: EM133101096

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