What is the wacc for company

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The Saunders Investment Bank has the following financing outstanding. Debt: 50,418 zero coupon bonds with face value of $1000, a current price quote of $180.19; the bonds have 23 years to maturity. Common Stock: 1,024,779 shares of common stock; the current price is $41.78 and the beta of the stock is 1.14. Market: The corporate tax rate is 40 percent, the market risk premium is 7 percent, and the risk free rate is 4 percent. What is the WACC for the company? Express your answer as a percentage rounded to two decimal places (e.g., 11.25 not 0.1125).

Reference no: EM132040824

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