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The IPO Investment Bank has the following financing outstanding. Debt: 1 2 0 , 0 0 0 bonds with a coupon rate of 8 percent
The IPO Investment Bank has the following financing outstanding.
Debt: bonds with a coupon rate of percent and a current price quote of ; the bonds have years to maturity. zero coupon bonds with a price quote of and years until maturity. Both bonds have a par value of $ and semiannual coupons.
Preferred stock: shares of percent preferred stock with a current price of $ and a par value of $
Common stock: shares of common stock; the current price is $ and the beta of the stock is
Market: The corporate tax rate is percent, the market risk premium is percent, and the riskfree rate is percent.
What is the WACC for the company? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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