Cost of Capital Corporate Finance Questions and Exercises 1. XYZ Corporation has 10,000 bonds outstanding that are selling at 1200. The bond's cost is %9. The company also has 30,000 shares of preferred stock and 60,000 shares of common stock outstanding. The preferred stock sells for $57 a share, and pay $7 per share as dividends. The common stock has a beta of 1.76 and sells for $55 a share. The U.S. Treasury bill is yielding 5 perc and the return on the market is 11.2 percent. The corporate tax rate is 40 percent. What is the firm's weighted average cost of capital WACC