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What is the WACC for a firm with the following information? dividend on common stock = $3.10 common stock beta = 1.37 coupon rate on

What is the WACC for a firm with the following information?

  • dividend on common stock = $3.10
  • common stock beta = 1.37
  • coupon rate on your corporate bond issue = 6.0%
  • corporate tax rate = 31.0%
  • current price of your corporate bond issue = $1,261.59
  • 5-year Treasury note yield = 3.0%
  • current common stock price = $44.81
  • total liabilities = $10.6 million
  • total assets = $32.7 million
  • promised growth rate on common stock dividends = 1.8% per year
  • time to maturity on corporate bond issue = 8 years

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