What is the wacc for the company

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The Saunders Investment Bank has the following financing outstanding. Debt: 40,000 bonds with a coupon rate of 8 percent and a current price quote of 112.0; the bonds have 20 years to maturity. 210,000 zero coupon bonds with a price quote of 18.5 and 30 years until maturity. Preferred stock: 130,000 shares of 6 percent preferred stock with a current price of $81, and a par value of $100. Common stock: 2,400,000 shares of common stock; the current price is $67, and the beta of the stock is 1.25. Market: The corporate tax rate is 30 percent, the market risk premium is 5 percent, and the risk-free rate is 2 percent. What is the WACC for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

Reference no: EM131329451

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