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Bob's is a retail chain of specialty hardware stores. The firm has 13,000 shares of stock outstanding that are currently valued at $60 a share
Bob's is a retail chain of specialty hardware stores. The firm has 13,000 shares of stock outstanding that are currently valued at $60 a share and provide a 14 percent rate of return. The firm also has 900 bonds outstanding that have a face value of $1,000, a market price of $1,052, and a 8,5 percent coupon. These bonds mature in 14 years and pay interest semiannually. The tax rate is 12 percent. What is the firm's WACC? WACC = %
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