Explore BrainMass

Explore BrainMass

    WACC

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A company's tax rate is 35%, what is the WACC using the followiong info:
    Debt: 6,000 9% coupon bonds outstanding, $1000.00 par value, 10 years to maturity, selling for 104% of par, the bonds make seminannual payments.
    Common stock: 90,000 shares outstanding, selling for $75.00 per share, beta is 1.20
    Preferred Stock: 8,000 shares of 4.75% preferred stock outstanding, currently selling for $60.00 per share.
    Market: 6% market risk premium and 5% risk-free rate

    © BrainMass Inc. brainmass.com February 24, 2021, 2:24 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/19257

    Solution Summary

    Calculates WACC.

    $2.19

    ADVERTISEMENT