roblem solving - ABC Corporation has 10,000 bonds outstanding with a 8% annual Yield to Maturity, 8 years O maturity and $1,000 face value. The company's 500,000 shares of common stock sell for 25 per share and have a beta of 1.5. The risk-free rate is 4%, and the market return is 12%. Assuming a 40% tax rate, what is the company's WACC? (7points) Problem solving 1. ABC Corporation has 10,000 bonds outstanding with a 8% annual Yield to Maturity, 8 years to maturity and $1,000 face value. The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk-free rate is 4%, and the market return is 12%. Assuming a 40% tax rate, what is the company's WACC? (7points) market value = 1,100 $