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Samsung Inc. hired you as a consultant to help estimate its cost of capital ( WACC ) . You have been provided with the following

Samsung Inc. hired you as a consultant to help estimate its cost of capital (WACC). You have been provided with the following data:
1. Samsung currently has one type of bond outstanding. The bond is a 20 year bond and is making quarterly coupon payment. It was issued 5 years ago at par with a total face value of $100 million and is carrying a 6% coupon rate at issuance. Each bond is currently trading above par at $1075.
2. A typical saving account at a bank is offering an interest rate of 0.5%, GIC is currently offering a
return of 1.5% and a 25-year Government of Canada bond is currently yielding at 4.0%.
3. The beta of Samsungs stock is 0.8 and the market risk premium of the Korea Composite Stock Price Index is 4.5%
4. There is currently 13 million shares of Samsung stock trading publicly on the Korean stock exchange.
Samsung just paid a dividend of $1.8 per share and the dividend is expected to grow at a constant rate of 3% forever. The actual return of the stock as at today is 12%.
5. The tax rate associated with Samsung Inc. is 30%
What is the WACC of Samsung Inc.?

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