The current stock price for a company is 47 per share if


The current stock price for a company is $47 per share, and there are 8 million shares outstanding. The beta for this firms stock is 1, the risk-free rate is 4.5, and the expected market risk premium is 5.9%. This firm also has 250,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 9%, 23 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.2%. If the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC) for this firm?

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Financial Management: The current stock price for a company is 47 per share if
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