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. SRK company has a debt to equity ratio of 2:3. The companys bonds with face value of 1,000 pay a 10% coupon (annual), mature

. SRK company has a debt to equity ratio of 2:3. The companys bonds with face value of 1,000 pay a 10% coupon (annual), mature in 20 years, and sell for 850.64. The company stock beta is 1.2 and the risk-free rate is 10%. The market return is given as 15%. The companys marginal tax rate is 40%.

You need to compute the WACC of the firm

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