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Question 8 5 pts Oak Stream Farms is estimating its WACC. From the following information, calculate its WACC: o Its capital structure consists of 25% debt and 75% common equity. o The company has 15-year bonds outstanding with a 6% annual coupon that are trading at par. o The company's tax rate is 25%. o The risk-free rate is 2%. . The market risk premium (RM-RREis 7.5%. . The stock's beta is 1.35. (The CAPM formula is Ri = RRE + B x [RM -RRE])

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