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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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