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The current stock price for a company is $45 per share, and there are 4 million shares outstanding. The beta for this firms stock is
The current stock price for a company is $45 per share, and there are 4 million shares outstanding. The beta for this firms stock is 1.2, the risk-free rate is 4 6, and the expected market risk premium is 6% This firm also has 230, 000 bonds outstanding, which pay interest semiannually These bonds have a coupon interest rate of 8%, 14 years to maturity, a face value of $1, 000, and an annual yield to maturity of 8.9% if the corporate tax rate is 38%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign)
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