The company has just approved their latest balance sheet.
The total value of the assets is 100 million €.
The company has equity of 25 million € (25 thousand shares with a par value of 1 thousand €).
The remaining part is financed by 150 thousand bonds with a par value of 500€.
The bonds have a maturity of 5 years, with annual coupon payments. The coupon rate is 5% and the bonds are selling today at 104%.
The company shares are trading today at a price of 2050€.
The corporate tax rate is 25% and the risk-free rate is 3%, the market return is just 4%.
Calculate the WACC and explain in detail all the steps.