McCann Catching, Inc. has 2.00 million shares of stock outstanding. The stock currently sells for $12.89 per share. The firms debt is publicly traded and was recently quoted at 91.00% of face value. It has a total face value of $16.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. Youve estimated that the firm has a beta of 1.04. The corporate tax rate is 39.00%.

The firm is considering a $41.30 million expansion of their production facility. The project has the same risk as the firm overall and will earn $12.00 million per year for 6.00 years.

What is the WACC for McCann Catching, Inc.?

#40 answered incorrect McCann Catching, Inc. has 2.00 million shares of stock outstanding. The stock currently sells for $12.89 per share. The firm's debt is publicly traded and was recently quoted at 91.00% of face value. It has a total face value of $16.00 million, and it is currently priced to yield 8.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. You've estimated that the firm has a beta of 1.04. The corporate tax rate is 39.00%. Correct Answer: 9.00% Points: 0 More Details Attempts Remaining: 2 The firm is considering a $41.30 million expansion of their production facility. The project has the same risk as the firm overall and will earn $12.00 million per year for 6.00 years. What is the WACC for McCann Catching, Inc.? Assignment is past due 8 Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Show Hint