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Mars Corp. has 4 million semiannual coupon bonds outstanding that sell at $850 per $1,000 par, mature in 10 years, and have a coupon rate
Mars Corp. has 4 million semiannual coupon bonds outstanding that sell at $850 per $1,000 par, mature in 10 years, and have a coupon rate of 6%. Its 70 million outstanding common shares sell at $100 per share. These shares' beta is 1.3. The risk-free rate is 2%, expected market return is 10%, and the corporate tax rate is 25%. It has no preferred stock. What is Mars Corp.'s weighted average cost of capital (WACC)? 10.72% 10.36% 12.18% 10.88% 10.08%
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