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A company has $85 million in outstanding bonds, and 10 million shares of stock currently trading at $33 per share. The bonds pay an annual
A company has $85 million in outstanding bonds, and 10 million shares of stock currently trading at $33 per share. The bonds pay an annual coupon rate of 6% and is trading at par. The company's beta is 0.9, its tax rate is 40%, the risk-free rate is 4%, and the market risk premium is 4%. What is this firm's WACC? Enter your answer as a percentage, without the percentage sign ('%'), rounded to 1 decimal. For example, if your answer is 0.0789, that's 7.9%, so just enter 7.9
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