You are given the following information about a company. The company pays no dividends. What is...

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Finance

You are given the following information about a company. Thecompany pays no dividends. What is the company’s WACC?

Debt:

Common Stock: Market:

90,000 bonds with a par value of $2,000 and a quoted price of108.40. The bonds have coupon rate of 5.3 percent and 20 years tomaturity. 40,000 zero coupon bonds with a quoted price of 29.15, 25years to maturity, and a par value of $10,000. Assume semiannualcoupon payments.

5.5 million shares of stock selling at a market price of $95with a beta of 1.15.

The market risk premium is 6.8 percent and the risk-free rate is2.8 percent. The tax rate is 21 percent.

*Please show excel formulas with answer

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You are given the following information about a company. Thecompany pays no dividends. What is the company’s WACC?Debt:Common Stock: Market:90,000 bonds with a par value of $2,000 and a quoted price of108.40. The bonds have coupon rate of 5.3 percent and 20 years tomaturity. 40,000 zero coupon bonds with a quoted price of 29.15, 25years to maturity, and a par value of $10,000. Assume semiannualcoupon payments.5.5 million shares of stock selling at a market price of $95with a beta of 1.15.The market risk premium is 6.8 percent and the risk-free rate is2.8 percent. The tax rate is 21 percent.*Please show excel formulas with answer

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