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BEE Corp. has 6 million shares of common stock outstanding and 600,000 bonds outstanding, par value 1,000 baht each with 5% coupon rate. The common

BEE Corp. has 6 million shares of common stock outstanding and 600,000 bonds outstanding, par value 1,000 baht each with 5% coupon rate. The common stock currently sells for 50 baht per share and has a beta of 1.50, and the bonds sell at par. The market risk premium is 5 percent, T-bills are yielding 2.5 percent, and BEEs tax rate is 30 percent. If BEE is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows? Hint: find WACC

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