We have been hired as a junior analyst to do a valuation of Ebro Foods. Your boss wants you to calculate the WACC. The current price of the company is 18.5 and total number of shares outstanding is 154 million. The consensus target price of Ebro Foods is 22.2 . The company has issued bonds that have a book value of 1600 Million in the balance sheet and a market value of 2.400 Million . Bonds that are comparable are offering a YTM of 2.55%. The company tax rate is 30%. Ebro Food is quoted in the Spanish market where the risk-free rate is 0.9% and the market Risk Premium is 7.58%. The company has a beta 0.6