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Suppose UTK Company has two classes of securities: long-term bonds and common stock. The bonds have a a total par value of $245 million, a
Suppose UTK Company has two classes of securities: long-term bonds and common stock. The bonds have a a total par value of $245 million, a market price of 103.1% of par, and a yield-to-maturity of 6.1%. The stock has 44 million shares outstanding, a current market price of $46, and an expected rate of return according to the CAPM of 13.5%. The firm's tax rate is 24%. What is the firm's WACC? Enter your answer as a decimal and show four decimal places. For example, if your answer is 9.25%, enter.0925. Type your
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