SRL a SIA BA X Calibri 1 - A A Aa A A E A 21 BI U b X, * A-D-A- ASEE 1 - 3 WE - : OTS it 14t * 2. (8 pt) Murdale Inc. has $100 mm (face value) of 5% coupon bonds outstanding with 10 years to maturity. The bonds make semi-annual coupon payments and are currently trading at 98% of par. These bonds are the only debt the company has. The company's target capital structure is 30% debt and 70% equity, and its equity beta is 1.5. Risk-free rate is 3% and the expected return on the market is 9%. Corporate tax rate is 30%. What is the company's WACC? Debt 0.34 Equity 0.74 I Page 1 of 4+