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What is the dream body works wacc

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Dream Body Works Limited has 30,000,000 shares on issue. The last traded share price for Dream Body Works was $5.70. The company has a beta of 1.10 and the market risk premium is 5.0%. Three years ago, Dream Body Works issued 10,000 ten year bonds to the public that have a par value of $1,000, a coupon rate of 8.5% and are currently trading at a yield-to-maturity of 6.8%. Dream Body Works also owes $20,000,000 on a long term banking facility that has an interest rate of 6.5%. The corporate tax rate is 28% and the risk free rate is 4.0%. (There are no preference shares on issue). What is the Dream Body Works WACC?

Reference no: EM132646696

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