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STFU Corporation has 9 million ordinary shares outstanding that are currently priced at $9 each and have a beta of 1.3. The market yield on
STFU Corporation has 9 million ordinary shares outstanding that are currently priced at $9 each and have a beta of 1.3. The market yield on the preference shares is 6% per annum. The company's bonds have a total market value of $2,000,000, have a coupon rate of 4% p.a. and current yield to maturity is 3% per annum. The market risk premium is 8% p.a., the risk-free rate is 2% p.a., and the company tax rate is 30%. The company has 300,000 preference shares trading at $10 each.
What is STFU Corporations WACC?
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