Given the following information, what is WBM Corporation's WACC? Common Stock: 1 million shares outstanding, ($40) per
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Given the following information, what is WBM Corporation's WACC?
Common Stock: 1 million shares outstanding, \($40\) per share, \($1\) par value, beta = 1.3 Bonds: 10,000 bonds outstanding, \($1,000\) face value each, 8 percent annual coupon, 22 years to maturity, market price = \($1,101.23\) per bond Market risk premium = 8.6%, risk-free rate = 4.5%, marginal tax rate = 34%
a. 7.89%
b. 9.90%
c. 12.19%
d. 13.30%
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