INTEL The following is information for Intel Intel wants to pursue a new type of artificial intelligence (AT) chip that would be used in autonomous vehicles. They want to know what they should use for their WACC (weighted average cost of capital). Preferred stock sells for $195 and pays an annual dividend of $15.75. There are currently 20 year 6.2% coupon bonds that pay semi-annual payments and are non-callable available at a price of $1,026.79 and a face value of $1,000. The bond-yield risk premium is 2.5%. The current risk free rate is 1% and the market risk premium is 9.3%. Intel's common stock has a BETA of 1.12. It sells for a price of $144.70 per share and pays an annual dividend of $2.53. The dividend growth rate is expected to be 3.5% a year. Intel has a target capital structure of 20% debt, 20% preferred stock and the rest is common equity Intel's tax rate is 10%