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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

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Solution Summary

Calculates WACC.

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