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Another excavation company called Silver 15 has 30,000 shares of common stock outstanding with a market price of $200 per share. It has 3,000 bonds
Another excavation company called Silver 15 has 30,000 shares of common stock outstanding with a market price of $200 per share. It has 3,000 bonds outstanding, each selling for $1,200. The bonds mature in 15 years, have a coupon rate of 6.50%, and pay coupons annually. The firm's beta is 1.94, the risk-free rate is 1.45%, and the market risk premium is 4.50%. The tax rate is 34%.
Based on the above information, please calculate the WACC?
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