ava108
ava108
20.06.2020 • 
Business

A Company has the following capital components: Bonds - 20,000 bonds outstanding with a 8% coupon rate paid semiannually, 6 years to maturity, a $1,000 face value, and a $ 975 market price. Common Stock - 500,000 shares trading for $80 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%. Assuming a 40% tax rate, what is the company’s WACC?

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