required return8.8%

Question 23 The only debt Allfresh Limited has is $70 million of bonds (par value) that it issued three (3) years ago. When the bonds were first issued three years ago they had a stated 10-year maturity and coupon rate of 9.5%. Currently, the bonds are trading at an investors required rate of return 8.0%. The company tax rate is 28% and the current market value of its equity is $145 million. (Use required return you calculated in Part 1 above for the cost of ordinary shares.) What is the WACC for Allfresh Limited using the current market values of debt and equity