What is weighted average cost of capital for firm

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Reference no: EM131087665

WACC 2

The current stock price for a company is $33 per share, and there are 4 million shares outstanding. The beta for this firms stock is 1.1, the risk-free rate is 4.9, and the expected market risk premium is 5.8%. This firm also has 80,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 9%, 10 years to maturity, a face value of $1,000, and an annual yield to maturity of 6.3%. If the corporate tax rate is 37%, what is the Weighted Average Cost of Capital (WACC) for this firm?

Reference no: EM131087665

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