Question 1 Not yet answered Marked out of 15.00 P Flag question Altona Orange Company has 1 million shares of common stock outstanding, which currently trade at a price of $50 per share. The company believes that its stockholders require a 15% return on their investment. The company also has $47.1 million (par value) five-year, fixed-rate notes with a coupon rate of 8% and yield to maturity of 7%. Because the yield on these bonds is less than the coupon rate, they trade at a premium. The current market value of the 5-year notes is $49 million. Lastly, the company has 200,000 outstanding preferred shares, which pay an $8 annual dividend and currently sell for $80 per share. The rate of return on the preferred stock is 10%. Assume there are no taxes. Required Calculate the company's weighted average cost of capital (WACC) and interpret it. 10 + 5 = 15 marks To answer this question, use the formula sheet in the following link