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ABC company has a capital structure with debt and equity. Debt - $50 million face value bonds maturing in 15 years with a coupon rate
ABC company has a capital structure with debt and equity. Debt - $50 million face value bonds maturing in 15 years with a coupon rate of 4% paid semiannually. Similar bonds are selling at 97.5. Equity - There are 2,000,000 shares outstanding. The investor's return is 10%. The next dividend is $3.5 with a growth rate of 4% into the future. Tax rate is 30%. Given the following information, calculate its WACC
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