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Problem
#54766

WACC

A company has 2,000,000 share of outstanding common stock with a market price of $2.00 per share.  The company has 2,000 outstanding bonds that are selling for $1,200.  The bonds mature in 15 years, have a coupon rate of 10%, and pay coupons annually.  The company's beta is 1.2, the risk free rate is 5%, and the market premium is 7%.  The tax rate is 34%.  Calculate the WACC.


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By OTA - Overall OTA Rating
Departed OTA
Purchase Cost Now
$2.19 CAD (was ~$3.99)
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