Shelie,

Can you please assist with the next question?

Thank you.

Gary

HW #9 Page 1 of 1 EMBA FlN526 spring 2017: FlN526 Gary Miller HW #9 instructions I help 4 value: 4.00 points Filer Manufadun'ng has 8.7 million shares of common stock outstanding. The current share price is $57, and the book value per stare is $5. The company also has two bond issues owstandim. The rst bond issue has a face value of $70.8 million and a coupon rate of 74 percent and sole for 107.9 percent of per. The second issue has a face value of $60.8 milion and a coupon rate at 79 percent and sells for 109.7 percent of par. The rst issue matures in 9 years, the second in 26 years. Suppose the company's stock has a beta of 1.3. The risk-free rate is 3.5 percent, and the market risk premium is 7.4 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the company's WACC? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.gr, 32.16.) WACC I 98 References eBook 3. Resources Worksheet Difculty: 1 Basic Section: 1308 The Weighted Average Cost of Capital Check m work