WACC

Information extracted from XYZ firm are as follow:

Common Shares issued: 1 million shares

Share Price: $5 per share

Bonds issued: 10,000 bonds

Face Value of Bond: $1,000

Price of Bond: $1,044.52

Coupon rate of bond: 5%

Maturity of Bond: 5 years

Information extracted from Factset are as follow:

XYZs beta: 1.2 times of market beta

10-year Treasury Bond yield: 3%

5-year AA bond yield: 3.5%

5-year A bonds have a spread of 0.5% above AA bond yields

Expected Return of the stock market: 9%

Tax Rate: 20%

Calculate XYZs WACC. (show workings)