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QUESTION 10 Given the following information, what is the WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3

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QUESTION 10 Given the following information, what is the WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3 Bonds: 10,000 bonds outstanding. $1,000 face value each, 8% annual coupon (paid annually), 22 years to maturity, market price = $1,101.23 per bond Market risk premium = 8.6%, risk-free rate = 4.5%, marginal tax rate = 34% A. 13.30% B. 13.43% C. 13.48% D. 13.82% E. None of the above

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