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1.Multiplex Entertainment has 9 million shares outstanding, 250,000 shares of 6% preferred stock, and 105,000 semi-annual bonds at 7.5% (with par value of $1000 each).
1.Multiplex Entertainment has 9 million shares outstanding, 250,000 shares of 6% preferred stock, and 105,000 semi-annual bonds at 7.5% (with par value of $1000 each). Common stock sells at $34/share (beta 1.25), preferred stock at $91/share, and the bonds at 93% of par with 15 years to maturity. The market risk premium is 8.5%, T-Bills are yielding 5%, and the corporate tax rate is 35%. What is the Multiplex Entertainment's WACC?
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