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(WACC) Margo Corporation is a major producer of lawn care products. Its stock currently sells for $10 per share; there are 10.5 million shares outstanding.

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(WACC) Margo Corporation is a major producer of lawn care products. Its stock currently sells for $10 per share; there are 10.5 million shares outstanding. It has debt with a book value of$400 million. Margo bonds yield 10% and trade at 100% of face value. Bonds mature in 10 years. The risk-free rate is 8%, the market risk premium is 9% and Margo has a beta equal to 1.4. The tax rate is 36%. The WACC is %

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