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You are trying to calculate your organization's WACC, you know that T-Bills are currently yielding 4%, Your current bond issue has 15 yrs to maturity,
You are trying to calculate your organization's WACC, you know that T-Bills are currently yielding 4%, Your current bond issue has 15 yrs to maturity, the market risk premium is 10%, the bonds pay an coupon rate of 8%, The companies Beta is 1.25, and your bonds are presently trading at 101.20% of their value. Your organization has a capital structure weight of 65% equity and 35% Debt. The Corporate tax rate is 32%. What is the WACC?
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