23 Jul WHAT IS THE WACC FOR THE COMPANY?
The Saunders Investment Bank has the following financing outs Show more Problem 13-17 Preferred Stock and WACC The Saunders Investment Bank has the following financing outstanding. Debt: 120000 bonds with a coupon rate of 8 percent and a current price quote of 110.0; the bonds have 20 years to maturity. 290000 zero coupon bonds with a price quote of 17.5 and 30 years until maturity. Preferred stock: 210000 shares of 6 percent preferred stock with a current price of $70 and a par value of $100. Common stock: 3200000 shares of common stock; the current price is $56 and the beta of the stock is 1.05. Market: The corporate tax rate is 40 percent the market risk premium is 7 percent and the risk-free rate is 4 percent. What is the WACC for the company? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16)) WACC ______ % Show less
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