The bonds make semi-annual payments

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Given the following information for ABC corp., find the WACC. Assume the company’s tax rate is 35%. Debt: 3,000 8 percent coupon bonds outstanding, 20 years to maturity, selling for 103 percent of par; the bonds make semi-annual payments. Common stock: 90,000 shares outstanding, selling for $45 per share; the beta is 1.20. Preferred stock: 13,000 shares of 7 percent preferred stock outstanding currently selling for $108 per share. Market: 8 percent market risk premium and 6 percent risk free rate.

Reference no: EM131069104

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