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Soru 4 The expected yield of 80.000 bonds issued by ABC Company with a 9-year maturity and a nominal value of 1.000 TL with a

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Soru 4 The expected yield of 80.000 bonds issued by ABC Company with a 9-year maturity and a nominal value of 1.000 TL with a coupon rate of 13% is 15%. Each of the company's 450.000 preferred stocks with a nominal value of 1.000 TL is sold for 110 TL and these preferred stocks distribute 2% dividend. The number of common stock outstanding is 680.000, each sold for 90 TL. Covariance of the company with the market is +0,002860; the standard deviation of the market is 4,88%. If the return rate of the treasury bill is 7% and the market return is 10%, what is the weighted Average Cost of Capital (WACC) of the firm? (tax rate 20%) A) %16,25 B) %14,56 C) %13,20 D) %12,45 E) %11,33

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