What is broad street parade corporation

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Broad Street Parade Corporation currently has 2 million equity shares outstanding trading at a price of $5 per share with a beta of 1.5. In addition, Broad Street Parade Corporation has $3 million in outstanding debt ($3.3 million in current market value) with a current market value of $1100, a coupon rate of 8 percent (annual payments), and 12 years to maturity. If the market risk premium is 7 percent, the risk free rate is 3 percent, and the appropriate tax rate is 15 percent, what is Broad Street Parade Corporation's WACC?

A. 24.41 percent

B. 11.58 percent

C. 11.71 percent

D. 13.5 percent

E. 6.76 percent

Reference no: EM131861966

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