Bond Information			Stock Information
Maturity Date	5/15/2027		Stock Price	30.99
Callable?	Yes		Dividend	0.97
Coupon	8.875%		EPS	2.59	*2019 number
Rating	BB		ROE	22.70%	(Average over last 3 years)
Price	116.25
			Beta	1.73
Yield to maturity*	3.015%		Market Cap	$ 11,616.7	in M
			Equity (Balance Sheet)	$ 2,614.0	in M
Settlement Date*	3/19/2021
Payment Frequency	Semiannual		Stock Rating	**
Type	Corporate Debentures
Amount Outstanding (this issue)	1,000,000	in thousands
*Last Trade Yield and Last Trade Date
Total Debt on Balance Sheet	$ 7,664.00	in M	Market Risk Premium	6.50%
Tax Rate	25%		Risk-free rate	1.74%

Use the information in the attached tABLE to calculate the weighted average cost of capital (WACC) for this firm. Not all numbers will be used. For Rd, you can use the provided yield.

To estimate Re, you can use either 1) the constant growth method = (Div1/Price) + g. For growth, use retention x ROE. or 2) the capital asset pricing model (CAPM) .

Calculate the WACC for the firm.