Please calculate the weight average cost of capital wacc


Please calculate the Weight Average Cost of Capital (WACC) for a company with the following attributes: Target capital structure of 62% debt & 38% common equity. There is no preferred stock. The beta of this company is 1.09 The risk-free rate is 1.8% The market risk premium is 6% The bonds on the books have the following characteristics 10 year bonds Current price = $890 Coupon rate = 3.5% (compounded annually) Par value = $1,000 The company's effective tax rate is 40%.

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Financial Management: Please calculate the weight average cost of capital wacc
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