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4 5 . Cream and Crimson has a capital structure of 4 0 % debt and 6 0 % equity. The tax rate is 3

45. Cream and Crimson has a capital structure of 40% debt and 60% equity. The tax rate is 34%. The firms bonds currently trade in the market for $1184. These $1,000 par value bonds have a coupon rate of 8%, paid semiannually, with 7 years to maturity. The firms common stock trades for $15 per share and the companys beta is 1.18. The risk-free rate (Rf)=3.2% and the market risk premium (Rm Rf)=8.4%. Given this information, Cream and Crimsons WACC is _____%.

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