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What is the firm''s wacc if the corporate tax rate is 35%

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A firm has 1,000,000 shares of stock outstanding, and each share is currently worth $22. The stock has a beta of 1.2. The firm also has 10-year bonds outstanding with a par value of $10,000,000, a coupon rate of 6.5%, and a yield to maturity of 7%. The yield on the bonds is currently 2 percentage points above the risk-free rate and 4 percentage points below the expected return on the overall market. What is the firm's WACC if the corporate tax rate is 35%? Round your answer to one decimal place.

Reference no: EM13304328

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