Finance

SAS's outstanding 11% coupon rate debentures mature in 15 years, pay interest semiannually and are callable at exist1, 015 in 3 years. The bonds are selling at exist998. SAS has a beta of 1.5, the risk free rate is 3% and the expected return on the market is 12%. SAS optimal capital structure is thought be 55% debt and 45% common equity. Tax rate is 35%. Calculate SAS's WACC. 11.37% 11.73% 12.01% 11.03% 12.10% SAS's outstanding 11% coupon rate debentures mature in 15 years, pay interest semiannually and are callable at exist1, 015 in 3 years. The bonds are selling at exist1, 218. SAS has a beta of 1.5, the risk free rate is 3% and the expected return on the market is 12%. SAS optimal capital structure is thought be 55% debt and 45% common equity. Tax rate is 35%. Calculate SAS's WACC. 10.50% 11.03% 9.10% 76% 12.10%