What is the weighted average cost of capital for this firm

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The current stock price for a company is $47 per share, and there are 3 million shares outstanding. The beta for this firms stock is 0.8, the risk-free rate is 4.8, and the expected market risk premium is 6.5%. This firm also has 200,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 8%, 11 years to maturity, a face value of $1,000, and an annual yield to maturity of 9%. If the corporate tax rate is 34%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not uses a percent sign).

Reference no: EM131980754

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