ASSIGNMENT \# 2 Calculate the Weighted Avg Cost of Capital, using the following Data: ABC CORPORATION DATA FOR THE YEAR 2014 1 LT DEBTS (LTD) Bonds: 8% Bonds with remaining maturity of 10 years currently selling in the market for 112.75. No of Bonds Outstanding =2m NOTE: BOND PRICES IN THE BOND MKT ARE QUOTED IN \% OF $1,000 2 Stockholders Equity (SHE) Pf Stock 7\% pf Stock currently selling in the Market a Price of $115.00 each No of Pf Stock Outstanding =10 million Common Stock: Current Market Price $60.20. No of Common shares outstanding =75 million Risk free Rate of Return = Overall Mkt Return = Firm'S Beta Coefficient = Hint: USE CAPM Model to Calculate Investor's requred Return =Ks 3 Marginal Tax Bracket (MTB) ABC 's MTB is = WACC is used in: 1 Setting the Minimum Discount Rate for Capital Budgeting Projects 2 It is used for Performance Evaluation of the Firm