Sanoma Bean is evaluating a new line of mixed nuts. Sanoma's beta is estimated to be 1.84, they have 2,000,000 outstanding shares that currently trade for a price of 46.34. Sanoma issued zero-coupon bonds 6 years ago; currently, the bonds have 13 years left to maturity?

The quoted price for these bonds is 70.01 and face value is $2,000 per bond. The total face value outstanding of these bonds is $3,000,000. The expected return to the S&P 500 is currently 7.57% and the risk-free rate is 2.56%.? Find the WACC for the company if the tax rate is 30.8%?

Assume annual compounding if relevant:

 

Answer Format:

INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

 

Enter percentage answers as a positive percentage % rounded to 2 decimal places.