What is the weighted average cost of capital for firm

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Reference no: EM131088151

WACC The current stock price for a company is $38 per share, and there are 5 million shares outstanding. The beta for this firms stock is 1.1, the risk-free rate is 4.7, and the expected market risk premium is 6.4%. This firm also has 210,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 8%, 18 years to maturity, a face value of $1000, and an annual yield to maturity of 8.1%. If corporate tax rate is 35%, What is the weighted average cost of capital (WACC) for this firm?

Reference no: EM131088151

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