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Find the WACC for HHH Inc. using the following: The company has 10,000 coupon bonds oustanding selling at 104% of par, with a 7% coupon

Find the WACC for HHH Inc. using the following: The company has 10,000 coupon bonds oustanding selling at 104% of par, with a 7% coupon rate, semi-annual payments, $1,000 par value, and 20 years to maturity. Common stock has 200,000 shares outstanding, selling at $65 per share and a beta of 0.90. The company's tax rate is 40%. The risk-free rate of interest is 3.75% and there is a market risk premium of 5.5%.

Long Term Debt Common Stock Other Company Information Market Information
Number 10,000 200,000 Net Income $1,000,000 MRP 5.50%
Price 104.00% $65.00 b 0.9 rRF 3.75%
Par $1,000.00 $1.00 g 3.50%
Coupon 7.00% T 40.00%
n 20 infinite
m 2
RB =? RS = ? WACC = ?

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