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Business, 13.05.2021 23:00 pennstatealum

This company has 800, 9% coupon bonds, with a face value of $1,000, are outstanding with 25 years to maturity, and a quoted price of 108% of par. The bonds pay interest annually. The company also has 20,000 shares of common stock, with a par value of $20, selling at $75 per share. The stock has a beta of 1.1. Preferred stock, with a par value of $25, has a market value of $30 per share and pays a $3 dividend per year. There are currently 10,000 shares of preferred stock outstanding. If the market has an expected return of 13 percent and the current risk free rate is 6 percent. The current tax rate is 35 percent. Calculate the WACC.

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This company has 800, 9% coupon bonds, with a face value of $1,000, are outstanding with 25 years to...
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