Question
Consider a firm with the following information: Debt: 8,000 coupon bonds outstanding, each bond has a par value of 1,000 par value, providing a 4%
Consider a firm with the following information: Debt: 8,000 coupon bonds outstanding, each bond has a par value of 1,000 par value, providing a 4% coupon rate, 15 years to maturity, selling for 105 percent of par; the bonds make semi-annual payments. The yield to maturity is 3.57%. There are also 5,000 zero-coupon bonds outstanding, 1,000 par value, selling for 75 percent of par and 4 years until maturity. The yield to maturity is 7.46%. Equity: 100,000 shares outstanding, selling for 250 EUR per share; the beta is 1.5. Market: 8% market risk premium and 2% risk-free rate. Corporate tax rate is 30%. Calculate the firm's WACC in %. Enter your answer with 2 decimals and do not provide the %-sign in your answer (e.g. write 72.3333% as 72.33).
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