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Please show work. Thanks! Here's some more info on a company: Number of issuances: Debt: 4000 Preferred Stock: 10,000 Common Stock: 200,0000 Bonds' YTM: 6%
Please show work. Thanks!
Here's some more info on a company:
Number of issuances:
Debt: 4000
Preferred Stock: 10,000
Common Stock: 200,0000
Bonds' YTM: 6% Beta: 1.2 Bond par value: $1,000
Preferred stock price: $60 Common Stock growth rate: 4% Common stock price: $45
Bond price: 104% of par Market risk premium: 12% Corporate tax rate: 35%
Preferred stock dividend: $9 Risk Free rate: 6% Bond Price: 104% of par
What is this company's WACC?
A. 10.5%
B. 13.3%
C. 15.2%
D. 17.2%
E. 18.7%
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