tax rate is 30%

Q5: Finding the WACC Given the following information for Company A. Assume the company's tax rate is 300 percent. Debt: 20,000. 5.6 percent coupon bonds outstanding, $1,000 par value, 2 years to maturity, selling for 97 percent of par; the bonds make semiannual payments. Common stock: 4000,000 shares outstanding, selling for $61 per share; the beta is .95. Market: 7 percent market risk premium and 3 percent risk-free rate