Sapp Truckings balance sheet shows a total of noncallable long-term debt (par value of $1,000) with an annual coupon rate of 7.00% (semiannual payment) and a price of $975 with a maturity of 15 years left. There is no preferred stocks. There are 100,000 corporate bonds. The balance sheet also shows that the company has 5 million shares of common stocks. The current stock price is $22.50 per share; its beta is 1.2 and a risk free rate of 3% and market risk premium is 6%. The firms tax rate is 34%.

Calculate WACC based on market value as the weights and WACC based on book value weights *USING EXCEL*

payment mode (per year) =	2
stock price =	22.5
beta =	1.2
risk free rate =	3%
market risk premium =	6%
tax rate=	25%
# of shares =	5,000,000

	Market-value based
	weight	cost
bonds
equity
WACC=