(10pts) 7. Shener Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable, bonds mature in 30 years, have an 7.00% annual coupon, a par value of $1,000, and a market price of $1,200.00. (2) The company's tax rate is 21%. (3) The risk-free rate is 3.00%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists Fall 19 Dr. engur FIN 311 of 30% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? WACC = wd+ rd1 -T)(ws)(tS) 2