Part A: WACC Calculations - 1 point total ISS' stock is currently selling for $40.00 per share. The company just paid a $1.20 dividend which is expected to increase at a rate of 4% forever. ISS' Beta is 1.20. The risk-free rate is 5% and the market risk premium is 7.00%. ISS has a debt issue 'outstanding with a 3% semiannual coupon and 19 years to maturity. The bonds are selling at 90% of par with a face value of $1,000. ISS' target capital structure is 71% equity, 29% debt. Their combined corporate tax rate is 25%. Use the first tab (WACC Calculations) in the template worksheet to calculate ISS' WACC. Your resulting WACC will flow over to the CAPEX tab.

Part A: WACC Calculations - 1 point total ISS' stock is currently selling for $40.00 per share. The company just paid a $1.20 dividend which is expected to increase at a rate of 4% forever. ISS' Beta is 1.20 . The risk-free rate is 5% and the market risk premium is 7.00%. ISS has a debt issue outstanding with a 3% semiannual coupon and 19 years to maturity. The bonds are selling at 90% of par with a face value of $1,000. ISS' target capital structure is 71% equity, 29% debt. Their combined corporate tax rate is 25%. Use the first tab (WACC Calculations) in the template worksheet to calculate ISS' WACC. Your resulting WACC will flow over to the CAPEX tab