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Use the information below to determine the company's current WACC: Bonds Tranche 1: $20M bond issue, 15 years ago, 5 years to maturity, 5%
Use the information below to determine the company's current WACC: Bonds Tranche 1: $20M bond issue, 15 years ago, 5 years to maturity, 5% coupon, bonds currently trade at 82.50% Bonds -Tranche 2: $30M bond issue, 10 years ago, 10 years to maturity, 7% coupon, bonds currently trade at 95% Equity: There are 10 million shares outstanding and a current market price of $5 per share Current dividends are $1 per share Beta is 1.2 Other: Assume a risk-free rate of 5% Assume a market rate of return of 18% The company's current tax rate is 40%
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