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Here is some information about Stokenchurch Incorporated: Beta of common stock = 1 . 5 Treasury bill rate = 4 % Market risk premium =

Here is some information about Stokenchurch Incorporated:
Beta of common stock
=
1.5
Treasury bill rate
=
4
%
Market risk premium
=
6.8
%
Yield to maturity on long
-
term debt
=
9
%
Book value of equity
=
$
370
million
Market value of equity
=
$
740
million
Long
-
term debt outstanding
=
$
740
million
Corporate tax rate
=
21
%
What is the company
s WACC?

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