### Common stock-market price

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Given the following information, what is the WACC? Common Stock: 1 million shares outstanding, \$40 per share, \$1 par value, beta = 1.3 Bonds: 10,000 bonds outstanding, \$1,000 face value each, 8% annual coupon, 22 years to maturity, market price = \$1,101.23 per bond Market risk premium = 8.6%, risk-free rate = 4.5%, marginal tax rate = 34% a. 13.30% b. 13.43% c. 13.48% d. 13.82% e. None of the above

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