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The following information is provided: Xena Corp. 2019 Average borrowing rate for debt 6.2% Stock Beta 1.73 Book value of Debt ($MM) $110.7 Stock price/share
The following information is provided:
Xena Corp. 2019 | |
Average borrowing rate for debt | 6.2% |
Stock Beta | 1.73 |
Book value of Debt ($MM) | $110.7 |
Stock price/share at year end | $25.83 |
# of shares outstanding (MM) | 10 |
Marginal Tax Rate | 27% |
The 10 year Treasury bond yield is 3%, and historical market risk premium is 5.2%. What is Xena 's estimated WACC?
Group of answer choices
9.755%
9.055%
10.755%
11.355%
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