Spartan Machinery stock trades at $50 per share with a beta of 1.6, an estimated market return of 14%, and a risk free rate of 6%. There are 20 million shares outstanding. The company has bonds with a face value $1 billion outstanding and a market value of $950 million. The coupon rate is 8% (semiannual coupons) and there are 15 years to maturity. The company has a tax rate of 40%. What is the WACC?

What is the weighted average cost of capital (WACC)? Why is it important for companies and their leaders?