Book value balance sheet

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Bolster Foods’ book value balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.5%. The bond has 15 years remaining, and it’s currently trading at 120% of the face value. The firm issued $100 million worth of common stock originally at $10 book value per share. It is now traded at $20 per share. If the risk-free rate is 3%, the expected market return is 6%, beta of firm’s equity is 1.5, and corporate tax rate is 35%, what is the company’s WACC?

Reference no: EM131180586

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