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A company has 4 , 2 6 7 , 9 8 5 shares of common stock outstanding. The current share price is $ 2 8
A company has shares of common stock outstanding. The current share price is $and the book value per share is $This company also has two bond issues outstanding. The first bond issue has a face value of $has a couponmatures in years and sells for percent of par. The second issue has a face value of $has a couponmatures in yearsand sells for percent of par.
The most recent dividend was $and the dividend growth rate is Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is
What is the company's WACC?
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