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Your company is asking you as a CFO to consider your capital costs for your long-term investment projects. As you collect the recent capital information
Your company is asking you as a CFO to consider your capital costs for your long-term investment projects. As you collect the recent capital information as the follows:
- Your company issue the common shares of Cnd$100/share, 2 million shares outstanding; Your company Beta is 1.7 and market risk free rate is 2% at this moment and expected market return is 7%.
- Your company issue the bond at the current quote of 970; Your coupon payment rate is 7%, while payment term is semi-annual; the bond tenor is 14 years; Your bond face value is 250million.
- Your company also issue some preferred stocks at cnd$70/share, with dividend payment of cnd7/share, total amount of issue is 100million.
Your corporate tax rate is 27%.
Please calculate your companys WACC
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