Compute WACC for company ABC: Market value of its debt if 400 mm; market value of its equity is 300mm; stock is currently priced at $30 per share and pays an annual dividend of $0.5 in next year. The annual dividend payment is expected to growth at 1%. Bond rating is A and maturity is 10 years. 10-year Treasuries yield 2%. The average yield spread between 10-year Treasury and 10-year A-rated corporate bonds is around 92 basis points or 0.92%. The firms tax rate is 40%.