A.) Common Stock: 14. 2 million shares outstanding, price = $35 per share Bond Issue 2: $175 million total face value, price = $850 per bond Beta = 1.15 Required return = 12% Market risk premium = 9% Risk-free rate = 5% Coupon rate = 9%, semiannual coupons 15 years to maturity Tax rate = 40% B) Based on your WACC from above, If a Company eventually recorded a 12 percent profit margin is the Company destroying or creating value? Discuss