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Calculate the WACC for Aya Ltd, using the following: Debt : 5,000 outstanding, 6% semi-annual coupon bonds, with 25 years to maturity and selling for

Calculate the WACC for Aya Ltd, using the following:

Debt: 5,000 outstanding, 6% semi-annual coupon bonds, with 25 years to maturity and selling for 105;
Common Stock: 175,000 shares outstanding, selling for $58.00 per share, with a beta of 1.10
Market: equity risk premium of 7% and 5% risk free rate.
Tax Rate: 35%

Question 30 options:

a)

9.62%

b)

5.63%

c)

10.39%

d)

None of these answers.

e)

9.63%

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