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Eastern Digital has 300,000 shares outstanding which sell for $10 per share. The extra risk associated with this stock suggests that the investor should get

Eastern Digital has 300,000 shares outstanding which sell for $10 per share. The extra risk associated with this stock suggests that the investor should get a return 5% greater than that being paid on its bonds. The company has 10,000 10‐year bonds outstanding. 


The bonds have a coupon rate of 8% (coupons paid semiannually), a face value of $1,000 and currently sell for $1,100. The marginal tax rate for this company is 30%. 



What is this company's WACC?

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