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The Saunders Investment Bank has the following financing outstanding. Debt: 5 0 , 0 0 0 bonds with a coupon rate of 8 percent and
The Saunders 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?
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