Homework 2 Question 3 - Calculate WACC

Your company estimation its WACC. You know the following information: The company's capital structure consists of 60% common equity and 40% debt Tax rate is 40% Your company has 20-year bonds outstanding with a 9% annual coupon and currently that bond is trading at par 5.5% is the risk-free rate 5% is the market risk premium 1.4-is the company stock's beta Calculate the company's WACC