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The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 8% coupon rate and a

The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 8% coupon rate and a current price quote of 1200 the bonds have 25 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and 30 years to maturity. Preferred Stock: 100,000 shares of 5% preferred stock with a current price of $78, and a par value of $100. Common Stock: 1,800,000 shares of Common Stock; the current price is $75. And the beta of the stock is 1.2. Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk free rate is 4%

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