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Given the information provided here, what is this firm's WACC? coupon rate on company bonds = 4.0% years until maturity on the bonds = 16

Given the information provided here, what is this firm's WACC?

  • coupon rate on company bonds = 4.0%
  • years until maturity on the bonds = 16
  • current price of company bonds = $813.98
  • recent stock price = $29.10
  • dividend expected at the end of the next period= $1.60
  • annual growth rate of dividend = 3.5%
  • average effective tax rate over past five years = 27.0%
  • total liabilities = $750 million
  • total shareholders' equity = $450 million
  • no preferred stock

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