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Ma , Inc. has a market value capital structure of 2 5 % debt and 7 5 % equity. The tax rate is 3 0

Ma, Inc. has a market value capital structure of 25% debt and 75% equity. The tax rate is 30%. The
firms bonds currently trade in the market for $1075.00. These bonds have a par value of $1,000, coupon
rate of 8% paid semiannually, and 12 years remaining to maturity. The firms common stock trades for
$24.00 per share. The firm has just paid a dividend of $2.10. Future dividends are expected to grow at
2% per year. Based on this information, Ma, Inc.s WACC is ___%.

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