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ABC Inc. issued 10,000 twelve-year, 5% yield, 6 percent semi-annual coupon bonds at par. The tax rate is 30%. The company has 1.2 million shares
ABC Inc. issued 10,000 twelve-year, 5% yield, 6 percent semi-annual coupon bonds at par. The tax rate is 30%. The company has 1.2 million shares of common stock outstanding. The current share price is $20. The companys stock has a beta of .95. The risk-free rate is 4.4 percent, and the market risk premium is 8 percent. What is the companys WACC?
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