What is the WACC for McCann Catching Inc

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Question - McCann Catching, Inc. has 3.00 million shares of stock outstanding. The stock currently sells for $12.95 per share. The firm's debt is publicly traded and was recently quoted at 91.00% of face value. It has a total face value of $15.00 million, and it is currently priced to yield 9.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.27. The corporate tax rate is 39.00%. The firm is considering a $40.13 million expansion of their production facility. The project has the same risk as the firm overall and will earn $12.00 million per year for 6.00 years.

Required - What is the WACC for McCann Catching, Inc.?

Reference no: EM133166486

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