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Given the following information about your firms capital structure, calculate your firms WACC (assume the corporate tax rate is 35%). Debt Number of bonds outstanding
Given the following information about your firms capital structure, calculate your firms WACC (assume the corporate tax rate is 35%). Debt Number of bonds outstanding = 12,000 price per bond = $1,165 par value per bond = $1,000 coupon rate = 6% (paid annually) Years to maturity = 10 Common Stock Number of shares outstanding = 1,000,000 Price per share = $25 Book value per share = $15 Beta = 1.4 Risk free rate = 4.5% Market risk premium = 5%
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