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Equity Information Debt Information 40 million shares $1 billion in outstanding debt (Face) $20 per share $1.1 billion market value of debt Beta = 1.1

Equity Information

Debt Information

40 million shares

$1 billion in outstanding debt (Face)

$20 per share

$1.1 billion market value of debt

Beta = 1.1

Coupon rate = 5%

Market Risk Premium = 8%

Annual Coupons

Risk Free Rate = 5%

20 years to maturity

Corporate Tax Rate is 40%

Using the information above, please answer the following questions and please follow the workbook we used in class to tackle these types of problems.

What is the company's WACC?

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