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Plese show detailed solution: Vestas Corporation has 10 million shares of common stock outstanding, with a Beta of 1.1, and 2 Million 5 percent coupon

Plese show detailed solution:

Vestas Corporation has 10 million shares of common stock outstanding, with a Beta of 1.1, and 2 Million 5 percent coupon rate annual bonds outstanding, par value $1,000 each and a maturity of 5 years.

The stock price today is 100, and the bonds are selling today at 105%.

The risk premium is 7%, and the treasury bonds have a YTM of 3% and a maturity of 10 years.

The tax rate is 25%

What is the market value Balance Sheet?

What is the WACC?

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