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Can you show me how to bind the WAC before the bond sale and the adjusted WACC for after the bond sale please. Adjusted WACC.

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Can you show me how to bind the WAC before the bond sale and the adjusted WACC for after the bond sale please.

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Adjusted WACC. Thorpe and Company is currently an all-equity rm. It has three million shares selling for $26 per share. Its beta is 0.7, and the current risk-free rate is 4.4%. The expected return on the market for the coming year is 10.7%. Thorpe will sell corporate bonds for $26,000,000 and retire common stock with the proceeds. The bonds are twenty-year semiannual bonds with a 8.4% coupon rate and $1,000 par value. The bonds are currently selling for $1,000.00 per bond. When the bonds are sold, the beta of the company will increase to 1.2. What was the WACC of Thorpe and Company before the bond sale? What is the adjusted WACC of Thorpe and Company after the bond sale if the corporate tax rate is 35%? Hint: The weight of equity before selling the bond is 100%. What was the WACC of Thorpe and Company before the bond sale

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