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You have been assigned so cakculate the Weighted-Average-Cost-od-Cipital (WACC) for vour small firm. The-compary has three sources of long-termeaphtat Its marginal tux rate is 21%.

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You have been assigned so cakculate the Weighted-Average-Cost-od-Cipital (WACC) for vour small firm. The-compary has three sources of long-termeaphtat Its marginal tux rate is 21%. First, there are 2,354,000 shares of common stock outstanding. Which are currently trading at $37.51 per share. You estinste that your firm has a beta of 0.90 , and that the long-tern rebim in equity markets will be 11.50%. The current return on short-term T-Bils is 2.25%. Second, the firm hus 190,000 shares of preferred stock outstanding. Dose shares pay annaal (perpetual) dividends of $7.00 per share, and are curnently seling for 59462 Third, there is an issos of 62,500 coupen bends outstandine. Tseve bonds have a face value of $1.000, mature in seventeen yeats, and pay 5:74% annual coupons These instrumerts are currently trading for $1,054,23. Based on the surrent price, eatimate theyield-to-maturity on the firmis bonds. 510x s.74e 605x 415% sist

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