Given the following, find the WACC assuming the company‘s tax rate is 30%.
Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually.
Ordinary shares: 225000 shares outstanding, selling for $87 per share, beta is 1.15.
Preference shares: paying dividends of 8% of a $100 par value, 15 000 outstanding, currently selling for $98 per share.
Other information: Market risk premium = 7%, risk-free rate = 3.1%
What is the weighted average cost of capital?
Already have the answers, just need the working out.