Question 1 DB Industries has the following capital structure. What is the WACC for the company? Debt: Preferred stock: Bond 1. 200,000 bonds with a coupon rate of 6% (paid semi-annually), a price quote of 110.0 and have 20 years to maturity. Bond 2. 150,000 zero coupon bonds (semi-annual compounding) with a price quote of 40.0 and 25 years until maturity. 300,000 shares of 4 percent preferred stock with a current price of $60, and a par value of $100. 6,000,000 shares of common stock, with a price of $80, and a beta of 1.3. The corporate tax rate is 40 percent, the market risk premium is 9%, and the risk-free rate is 4%. Common stock: Market