What is the company wacc

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Problem Calculating the WACC [LO3] Dani Corporation has 8 million shares of common stock outstanding. The current share price is $80, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $125 million, a coupon rate of 5 percent, and sells for 91 percent of par. The second issue has a face value of $110 million, a coupon rate of 4 percent, and sells for 106 percent of par. The first issue matures in 23 years, the second in 9 years. Suppose the most recent dividend was $4.80 and the dividend growth rate is percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. The tax rate is 21 percent. What is the company's WACC?

Reference no: EM133341002

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